Treasury announces GM exit strategy

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Addie
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Treasury announces GM exit strategy

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[link]Detroit News,http://www.detroitnews.com/article/2012 ... dyssey=mod[/link]





Treasury announces GM exit strategy; automaker buying 200 million shares from U.S.





The Obama administration said Wednesday it will sell 40 percent of its remaining stake in General Motors Co. back to the automaker — and said it plans to completely exit the Detroit automaker by March 2014.





The Detroit automaker said it will purchase 200 million shares of GM stock held by Treasury for $5.5 billion — or $27.50 per share — nearly $2 above the stock's closing price on Tuesday.





The U.S. Treasury — after more than a year of refusing to say when it might start selling its remaining stake in GM — said it willannounce a written plan in January to shed its remaining 300 million shares over the next 12 to 15 months - likely a series of small stock sales. ...





"The government should not be in the business of owning stakes in private companies for an indefinite period of time," Assistant Treasury Secretary Tim Massad said. "Moving to exit our investment in GM within the next 12 to 15 months is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests."
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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Sterngard Friegen
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Treasury announces GM exit strategy

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Post by Sterngard Friegen »

Will we have made any money on the auto bailout? We made money from the bank bailouts.

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realist
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Treasury announces GM exit strategy

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Will we have made any money on the auto bailout? We made money from the bank bailouts.According to Politico...





Treasury to exit GM bailout, likely at a loss





Read more: [/break1]politico.com/story/2012/12/treasury-to-exit-gm-likely-at-a-loss-85304.html#ixzz2FW2wljKe]http://www.politico.com/story/2012/12/t ... z2FW2wljKe








The Treasury Department on Wednesday announced plans to sell, almost certainly at a loss, the government’s remaining shares of Detroit-based automaker General Motors in the latest in a recent string of moves by the administration to unwind controversial taxpayer bailouts stemming from the financial crisis.





Although the sale will allow the federal government to unload its investments in the auto industry company, it will likely do so at a loss to taxpayers worth billions of dollars.





[...]





Treasury plans to sell its 500.1 million shares in the carmaker over the next 12 to 15 months, with GM buying 200 million at $27.50 per share by the end of the year. This sale will bring in $5.5 billion toward the $27 billion that the company still owes.





[...]





After the initial stock sale, Treasury will own approximately 19 percent of GM’s outstanding shares, down from the 32 percent ownership stake.


Sen. Carl Levin (D-Mich.) said Treasury’s plan to sell its remaining General Motors stock “strikes the proper balance between maximizing the return for the taxpayer and limiting government involvement in a private enterprise.”





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Sterngard Friegen
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Treasury announces GM exit strategy

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Post by Sterngard Friegen »

Nuts.

Joseph Robidoux III
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Treasury announces GM exit strategy

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Post by Joseph Robidoux III »

Statement by the President:GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration. [/break1]whitehouse.gov/the-press-office/2013/12/09/statement-president]http://www.whitehouse.gov/the-press-off ... -president

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