U.S Treasury Sells More GM Shares
The U.S. Treasury Department has sold another chunk of its General Motors shares according to documents posted online earlier this week. From May 6 to September 13, the Treasury Department has unloaded over 110 million shares, enabling them to raise over $3.82 billion. In 2009, the U.S. Treasury Department purchased a majority stake in the automaker as part of the government bailout. Of the $49.5 million invested, around $35.4 billion has been recovered, making the number of shares still held by the government 101 million. The Treasury not only helped out General Motors in the automotive bailout, but Chrysler as well. Since the intent was to save jobs and not profit from the bailout, the government does not expect to recollect the entire $85 billion that it forked out. The Treasury Department is set to lose $15 billion. "Treasury acted to save the American auto industry and prevent the loss of an estimated one million jobs," said Timothy Massad, Treasury Assistant Secretary, in a recent statement. Once government shares have been completely unloaded, GM will be able to reinvest in company operations as well as change perceptions that they are no longer "Government Motors." The automaker may also consider reinstating a dividend on common shares, as these dividends have not been paid out since 2008, right before the automotive bailout. Source: Reuters
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