Breaking: Government Dumps GM Stock, Loses $10.5 Billion on Auto Bailout
Just days after a court allowed the city of Detroit to file for Chapter 9 municipal bankruptcy, the federal government announced that it would finally sell the last of its stock in General Motors. The auto manufactures stock soared on Monday ahead of news that the government was preparing to sell its shares of GM stock, but the sale ensures that the federal government will take a loss on the auto bailout.
On Monday afternoon, the government announced it would sell the last of its holdings in GM – 31.1 million shares or 2 percent of the company.
“The government received 912 million GM shares, or 60.8 percent of the company, in exchange for a $49.5 billion bailout during the financial crisis in 2008 and 2009,” AP reports. The government recouped $38.4 billion of that investment, but will fall short of regaining all of taxpayers’ investment or generating a profit.
[Photo via AP ]
Have a tip we should know? firstname.lastname@example.org