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**Adwetyren** · 04-20-2011, 04:34 AM

Had they let GM go bankrupt like they should have GM would be a much leaner and healthier company today.

http://www.google.com/hostednews/afp...272997d1cd.a51

GM stock lower amid report of quick govt sale

(AFP) – 7 hours ago

NEW YORK — A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday.

After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59.

The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper.

The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share.

At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.

The summer sale would make it more likely that the government could unload the remainder of its shares before the 2012 election season.

04-20-2011, 04:34 AM	#1
Adwetyren Join Date Oct 2005 Posts 457 Senior Member	U.S. Taxpayers likely to lose big on GM stock sale Had they let GM go bankrupt like they should have GM would be a much leaner and healthier company today. http://www.google.com/hostednews/afp...272997d1cd.a51 GM stock lower amid report of quick govt sale (AFP) – 7 hours ago NEW YORK — A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday. After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59. The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper. The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share. At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources. The summer sale would make it more likely that the government could unload the remainder of its shares before the 2012 election season.
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