General Motors stock has been languishing for months, failing to climb past $30 per share since July of last year. Trading at around $22 per share today, the optimism that surrounded the company's emergence from bankruptcy and initial public offering in November 2010 has all but vanished. So it's no wonder that the United States Treasury has decided to sit on its GM shares, with no plans to sell of its remaining 26 percent stake in the automaker.

According to The Detroit News, the Treasury believes that GM is underpriced given the changes that have happened at the company. Assistant Treasury Secretary Time Massad told the News, "Our perspective is that the company has made real progress, but the market hasn't given them as much credit for that as it might."

The government stands to lose $15 billion on the bailout at today's stock prices, according to the report. Of the $49.5 billion spent on the bailout, the government has already recouped roughly $23 billion in reducing its stake in GM from the 61 percent it once held. GM shares would have to more than double in value to $53 for the Treasury to break even in liquidating the 500 million shares it still owns, according to the report.


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  • 34 Comments
      nic98765
      • 2 Years Ago
      According to what their recruiter told me, their open positions above some mid engineering level, are not advertised to the general public but are filled internally. He also told me that they offer a free car every few years and free gas for a midlevel position.
      • 2 Years Ago
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        • 2 Years Ago
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        Jason Allen
        • 2 Years Ago
        Laser is being protected too! Can't people like this take the heat!?!?!?!? I am funny and right so what if it's a little cruel? Can't take it then don't dish it! !!!!!!!!!!!!!!
        paul3230
        • 2 Years Ago
        WHAT?! Listen to what you are saying. You are saying that it's better to ship off American jobs to the Chinese rather than to invest in our own industry? GM deserved to go to bankruptcy..but the Chinese? The UAW are still americans..wether you like it or not. If you forgot, Ford is unionized as well.
      Andre Neves
      • 2 Years Ago
      Of course they aren't going to see it. LoL. This is the U.S Government we're talking about here. They'd have a part of every corporation if it were up to them. Let's get real. ...continues to be Government Motors as far as i'm concerned.
        Snark
        • 2 Years Ago
        @Andre Neves
        I was going to post something snarky like, "In before Government Motors reference." But I should have known the first poster would be that guy.
        aatbloke1967
        • 2 Years Ago
        @Andre Neves
        Andre Neves, do you have any clue whatsoever as to what you're talking about? It's the same methodology with any investment; a shareholding entity will choose its moments in an attempt to maximise its capital gain. The same idiots who bleat about the US Government overspending are now having a pop at them for attempting to make money. Typical.
        That Guy
        • 2 Years Ago
        @Andre Neves
        Andre: Is Ford also Government Motors because they took almost $6 BILLKION of taxpayer dollars?
          axiomatik
          • 2 Years Ago
          @That Guy
          Let's not play games. Ford lucked out on the timing, that is all. They were sinking like a rock, and took out huge loans before the recession. Mid-2000's, Ford was in much worse shape than GM, from a financial standpoint. They were losing billions of dollars, their marketshare had dropped for something like 17 straight quarters. If they hadn't mortgaged everything, they would have gone bankrupt before the recession even hit.
          That Guy
          • 2 Years Ago
          @That Guy
          *Billion
          SheldonRoss
          • 2 Years Ago
          @That Guy
          Ignorance is not good tool with which to fight ignorance That Guy.
        Steve
        • 2 Years Ago
        @Andre Neves
        This issue is too "complex" for Andre. He needs to stick to Tic-Tac-To.... You can stump him for a week with the question of what came first the chicken or the egg.
      Zoom
      • 2 Years Ago
      I expect this thread to be dominated by know-nothings. I'm happy with my govt holding the shares. Auto sales are up, and will continue to climb. The stock price will surely go up, and then we should sell. All the "govt motors" nonsense is just bait to get people riled up. Grow up.
        • 2 Years Ago
        @Zoom
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      Hazdaz
      • 2 Years Ago
      I wonder... on German-speaking car forums, is there a big huge ruckus about the fact that the German government owns a part of VW (and has owned it for a long time now, with no plans on selling)??? Or are the German people smart enough to know that what is good for them, is also good for VW corporate? Alas, they probably don't have our equivalent of The Dirty South, nor do I bet, do they have the equivalent of our FAUX News to feed the feeble-minded with baseless propoganda.
      • 2 Years Ago
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      • 2 Years Ago
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        Mike
        • 2 Years Ago
        Were you fired from Wall street? Please don't try to get the people here to flush their money on this declining stock.
          • 2 Years Ago
          @Mike
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          axiomatik
          • 2 Years Ago
          @Mike
          The biggest drag on GM's stock price is the simple fact that the government owns a huge chunk of it. Investors don't want to buy GM and find out a week later that the government is going to sell millions of shares, as that would drive down the price. As long as the government owns so many shares, investors will be wary of buying.
      SheldonRoss
      • 2 Years Ago
      Clearly the government doesn't care about opportunity cost. But I suppose the money from the sale would probably just be wasted in whatever avenue it got routed to.
      NY EVO X MR GUY
      • 2 Years Ago
      Well, the public offering of the price was too high. $15-20 dollars a share wouldve been much better. But GM and Bank-Underwriters overpriced it. The government leveraged itself by using taxpayer money into owning GM stock. The least they can do is try and turn a profit. Bailout,QE or whatever you call it, pumping money into something while it is failing can be risky. The government should have better assessed its risk.
      • 2 Years Ago
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