The Treasury Department announced that in March it has sold $621 million worth of GM’s stock.
“To date, Treasury has recovered approximately $30.4 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income,” reported the Treasury.
Since 2008 the US Treasury Department has issued $49.5 billion in rescue aid to GM and still has to get back $19.1 billion. Last month GM’s stock was sold in a range of $26.75 to $29.30, which means the Treasury has sold about 22.2 million shares. This means that it still has 255 million shares to be sold for around $75 each to break even. That price would be more than double the actual trading price.
In January the Treasury announced it plans to sell all shares by early 2014, hiring JPMorgan and Citigroup to deal with the sale. For each share they sell the banks will get 1 cent for a fee of up to $3 million. Last year GM purchased 200 million of its shares offering $5.5 billion. In November 2010, when the Treasury began selling the shares, the price was $33 for each share, but the price dropped dramatically in 2012 due to slowing economy and the recession in Europe.