The U.S. Treasury Department plans to sell its remaining 31.1 million General Motors shares by the end of the year, according to a statement issued by the government branch. The move would bring to an end to the Treasury’s role in shaping the auto giant’s restructuring following bankruptcy proceedings in 2009.
The 31.1 million shares represent about 2 percent of GM’s total stock — a significant decrease from the 912 million shares the government received in exchange for $49.5 billion in cash in the wake of the 2008 financial collapse. Shares of GM stock closed yesterday at $38.45, a 34 percent increase on the year.
To date, the U.S. Treasury Department has recovered $38.4 billion from previous sales of GM stock and the final offering promises to recoup an expected $1.17 billion, leaving the department about $10 billion short compared on its initial investment. However, the government would argue that investing in The General saved millions of jobs and that it never expected to recoup its entire investment. That said, the total sum of Uncle Sam’s $421 billion bailout spree, including TARP and rescuing the financial sector, has reportedly returned a $10 billion profit.