It's been a full year since the General Motors Initial Public Offering, and the company's stock isn't performing as well as anyone in Detroit or Washington, D.C. would like. As The Detroit News notes, the stock has dipped by 30 percent from its initial price, thanks in part to troubles in Europe and internal dissatisfaction with the company's profit margins. As of last Wednesday, the company's stock fell by 10.9 percent to $22.31 when GM announced that its fourth-quarter earnings wouldn't make any gains over 2010. That news has prompted the U.S. Treasury, which still holds a 27-percent stake in General Motors, to hold off indefinitely on selling its remaining 500 million shares.
The Detroit News reports that if the government were to sell off its stake in the company at current trading prices, the country would lose around $15 billion on the country's investment in GM. Even with the indefinite hold on selling off the shares, the federal government has readjusted its projected losses on the automotive bailouts from $14.33 billion to $23.6 billion.
The Detroit News reports that if the government were to sell off its stake in the company at current trading prices, the country would lose around $15 billion on the country's investment in GM. Even with the indefinite hold on selling off the shares, the federal government has readjusted its projected losses on the automotive bailouts from $14.33 billion to $23.6 billion.
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