By Ben Klayman | Reuters – 1 hr 17 mins ago
(Reuters) - General Motors Co said it will buy back 200 million of its shares from the U.S. Treasury and the government plans to sell its remaining stake within 15 months, all but assuring a multibillion dollar loss.
Treasury said it will sell its remaining stake of about 300.1 million shares "through various means in an orderly fashion", and could begin the process as soon as January.
The auto giant, dubbed "Government Motors," received about $50 billion from the Treasury as part of its bankruptcy restructuring in 2009 under the Troubled Asset Relief Program (TARP).
The stock sale is part of a broader push to wind down the controversial financial bailout.
The GM sale will raise the proceeds that Treasury has recovered to $28.6 billion. With $20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of $69.72 to break even.
If Treasury sold its remaining stock at the price GM is paying now, it would come up short by more than $12 billion.
Please join us by emailing your reps in Washington against this short sale of our tax dollars !!!
We MUST BREAK EVEN OR MAKE A PROFIT ON OUR TAX DOLLARS - OTHERWISE WE HAVE GIVEN OUR MONEY AWAY !
DEMAND A PROFIT !
Original link at:http://news.yahoo.com/gm-buy-stake-treasury-plans-full-exit-holdings-131103066--finance.html
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