For those eager to see the U.S. Treasury sell its remaining shares of General Motors so life can get back to normal, keep waiting. Because according to a report from The Detroit News, Uncle Sam doesn’t plan on selling off his remaining stake until at least August, or possibly September of this year.
One reason for the decision has to due with a lockout period, which actually expires May 22 (next weekend), but The Treasury apperantly wants to wait until it can use securities rules to make it easier for the sales of the shares to happen — whatever that means — which will be in the timeframe of August. But considering most of Wall Street likes to vacation in August, the sale might have to wait until after September’s Labor Day. By then, Treasury will sell its remaining shares with two sales, rather than just one.
At current prices, The Treasury would lose $9.5 billion on its $49.5 billion loan to GM.
Source: The Detroit News