The Treasury Department said Wednesday that it planned to sell off its entire 32 percent stake in General Motors within 15 months, eliminating another reminder of the bailouts precipitated by the financial crash of 2008.
The news comes a week after the Obama administration completely sold off its entire holdings in the American International Group, one of the most controversial rescues of the market crisis.
According to a plan outlined Wednesday, the Treasury Department will sell a little less than half of its stake, or 200 million shares, back to GM for $5.5 billion by year end. The purchase price of $27.50 is about 8 percent higher than the carmaker’s closing price Tuesday. The Treasury Department will then sell its remaining 300.1 million shares within the next year to 15 months, depending on market conditions. Those sales could be through stock offerings or other means.
JOIN THE DISCUSSION | Register here
We welcome comments. Please keep them civil, short and to the point. ALL CAPS, spam, obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. Thanks for taking part — and abiding by these simple rules. A thorough explanation of rules of conduct can be found in our Terms of Service. If you have any questions, including why your comment may not be showing immediately after you submit it, be sure to visit the commenting FAQ.