US Treasury Close to Put an End to GM Ownership image

The US Treasury is months away from selling the rest of 7.3% stake in GM and ending the ownership of the automaker.

The government revealed in a report published this week that it had reduced the stake in GM to 7.3%, more than previously predicted. Back in December the Treasury revealed its plans to gradually sell GM shares and end ownership of the automaker by early 2014. As of June 12th the government owned 13.8% of the US automaker and last week officials said that in August they have sold $811.1 million in GM stock.

From May 6th until September 13th the US Treasury has sold 110.3 million GM shares at an average price of $34.65 per share totaling $3.8 billion. Last month the government said it has managed to recoup $35.4 billion of the $49.5 billion bailout. Although GM’s shares price continues to increase reaching $36.71 on Tuesday, the government might still lose about $10 billion on the US automaker’s bailout.

Still, the White House considers the bailout a success and said that it has recovered “significantly more than expected” regarding the auto bailouts.

“Today, the Big Three are profitable and gaining market share for first time in 20 years,” the White House said.

Source: freep.com