According to The Detroit News
, the United States Treasury Department
is planning on quickly eliminating its shares of General Motors
stock rather than trying to maximize the government's return on its investment. The news comes from Austan Goolsbee, chairman of the Council of Economic Advisors, who said that the government is interested in quickly shedding its 33 percent stake in the automaker due to the fact that it never wanted to be a shareholder in the automaker to begin with. The Detroit News
reports that if the Treasury Department decided to sell its stake in GM
at its current trading price, the government would lose something on the order of $10 billion.
That's out of the $49.5 billion bailout that GM received from the government.
GM shares are currently trading at their lowest levels since the company went public, thanks largely to an overall market dip. The drop came even with GM reporting its first profit since 2004.
The Detroit News
reports that so far, the federal government has reclaimed $23.1 billion of its investment in GM, and that in order to recuperate the $26.4 billion, GM stock would need to trade at $53 per share. The company is trading at $33.02 at the time of this writing.
[Source: The Detroit News