Government Motors is almost no more
The Treasury sells $811 million worth of its stake in General Motors. It still needs $14.1 billion to break even on the automaker's bailout.
According to The Associated Press, the Treasury Department said it sold $811 million worth of GM common stock last month. The report, issued Tuesday, says the government has recovered about $35.4 billion of the $49.5 billion bailout. That still leaves a hefty $14.1 billion on the table.
The government still has an estimated 186 million shares. Those would have to sell for around $76 each for the government to break even, which is a bit problematic considering that's more than double the current trading price. Maybe the government would have more time to let the stock mature a bit if it hadn't painted itself into a corner by promising to sell all its GM shares by early 2014.
It made that announcement back in January and hired JPMorgan Securities and Citigroup Global Markets to conduct the sale. While the Treasury understandably wants to put this mess behind it, its haste seems more for GM's benefit. The Treasury did the bailing out, but running out of cash in 2008 and needing the government to fund its bankruptcy reorganization was all GM's doing.
When the government finally sells all of its shares, it will end a sad chapter in GM's history. The company nearly ran out of cash in 2008 and needed government money to survive a trip through bankruptcy reorganization. With GM posting 14 straight profitable quarters since then, maybe the Treasury just wanted to go out on a high note.
Considering the company is just getting around to updating its most popular vehicle -- the Chevrolet Silverado -- and finally reaping some benefits from alternative-fuel vehicles, a little more patience from the Treasury might have paid off.
Don't buy any GM products until they repay the pension plans and make good on those bonds.
The UAW stole that money from the widows and orphans, pensions and taxpayers.
Every time I see someone buying a GM product, I can't help but think, it says, I SUPPORT theft to support the deadbeat UAW and the scum they represent...
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
More Market News
The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'