U.S. Treasury Sells More GM Shares
The U.S. Treasury has vowed to give up its hold of General Motors Co. by March 2014. In keeping with that goal, this February the Treasury sold at least 17.2 million shares of their GM stocks, raising $489.90 million. The Treasury has not given an exact number of shares it has sold, but it can be estimated between 17.2 and 18.1 million shares. When added up, the Treasury has sold at least 7 percent of its 300 million shares. Since the GM bailout in 2008 and 2009 of $49.5 billion, the Treasury has regained $29.8 billion. The Treasury sold almost half its stake in the company in GM's November 2010 initial public offering, and afterward continued to lower its state to 19 percent. On a quarterly basis, the Treasury plans to announce how many shares it has sold of GM stocks, reporting monthly sales. The Treasury named Citigroup Inc. and JPMorgan Chase & Co. to manage all sales. The Treasury has also retained six broker-dealers to assist with sales. There are no plans for the Treasury to make their trading plan open to the public to prevent hedge funds and other investors from taking advantage. The U.S. Treasury has limited itself on how much stocks can be sold at a time, as well as at certain prices. To break even, the government needs to average $72 per share, but with current prices, it looks as if the Treasury will lose more than $12 billion from the bailout. Thanks to a rebound in GM stock prices, losses from the bailout dropped $4 billion, and the Obama administration announced that the losses have fallen again to a total $20.3 billion. Source: Detroit News
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