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...
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