According to a report from the Detroit News, the United States Treasury has plans to cut its losses and walk away from its ownership of General Motors by selling its remaining 33 percent stake sooner than many had predicted.
If Uncle Sam sold today, he would have lost roughly $10 billion out of the $49.5 billion that he invested in the company. Couple that with the $14 billion in tax breaks The General secured, and it almost seems like the Feds have absolutely no interest in pursuing the company for the outstanding balance. To note, Treasury’s lock-up period expires in May, and it’s quite possible that the remaining shares will be sold soon after.
So, is Treasury doing the right thing? Tell us what you think by sounding off in the comments below.
Source: The Detroit News