US Treasury sold $570.1 million of GM shares in September

Article by Anita Panait, on October 15, 2013

The United States Department of the Treasury disclosed that it sold another $570.1 million of General Motors common stock in September as part of its move to totally exit as a shareholder of the carmaker by March 2014. According to documents the Treasury filed online, it had recovered around $36 billion from its $49.5 billion bailout of the carmaker, as of the end of September.

The Treasury launched on Sept. 26, the third phase of a plan to sell its stake in GM. The Treasury -- which in December 2012 said that it planned to sell all its shares in GM in 12 to 15 months -- did not disclose the number of shares it sold in September, but remarked that its holdings at the carmaker was around 7 percent.

The Treasury owned 101.3 million shares, or 7.3 percent, at the end of the second phase of trading. Treasury officials have said the US government will lose $15 billion on the $85-billion auto industry bailout that included Chrysler, but reiterated that the intention of the rescue loan was to save jobs, not make a profit.

GM chief executive Dan Akerson has said that a total exit of the Treasury from the carmaker would bring closure to the bailout and get rid of the view of government ownership among customers.  There have been speculations among analysts that Treasury's GM exit could be earlier than expected. The carmaker may reinstate a dividend on the common shares that has not been paid since May 2008.

Topics: us treasury, gm, shares

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