US Treasury Continues to Sell GM Shares, Exit Draws Closer image

The US Treasury announced that it will continue selling GM’s shares implementing a third pre-defined written trading plan.

The US Treasury had 101.3 million GM shares at the end of the second defined trading plan. According to Tim Massad, Treasury Assistant Secretary for Financial Stability, the investment in General Motors has been part of the US government’s response to the economic crisis and that this move helped prevent the fall of the auto industry. Still, the Treasury will continue selling the GM stake.

“The third trading plan will allow us to continue exiting the investment in accordance with our previously announced timetable while maximizing the taxpayer’s return,” said Massad.

At the end of 2012, GM acquired 200 million shares from the US Treasury. Back then the government previously announced it would exit the US automaker in the following 12 to 15 months. At the beginning of this month the Treasury reduced the stake to 7.3% and said it will completely exit the automaker at the beginning of 2014.

Until now the government has managed to recover $404.9 billion from the total of $420.92 billion offered through the Troubled Asset Relief Program, which means 96% of the investment.

Source: forbes.com