The U.S. Treasury plans to sell its remaining stake in General Motors Co. shares "as soon as practicable," according to prepared remarks revealed on the Web site of the Committee on Oversight and Government Reform.
Former auto czar Ron Bloom is expected to testify in a committee hearing dubbed the "Lasting Implications of the General Motors Bailout" that the government has “a clear path” to exit its investment in GM. Bloom now serves as the White House manufacturing adviser.
The Committee on Oversight and Government Reform has broad oversight on policies in government. In 2010, GM went public, enabling the U.S. government to almost halve its 61% stake in GM. Presently, the U.S. government holds 32% of GM's common equity.
Bloom is expected to say in his remarks that the government is still a “reluctant shareholder” and that it aims to dispose of its investment with the dual goals of “achieving financial stability and maximizing returns to taxpayers."
Sources told Reuters that the U.S. Treasury didn’t intend to sell its remaining shares in GM until August, which is after GM posted its second-quarter earnings. GM shares have dropped below their $33 IPO price, partly because of concerns on government involvement. On the New York Stock Exchange yesterday, GM stock closed at $29.97, a 1.3% increase.