General Motors is just one step closer to becoming free from the government debt, as the U.S. treasury has been selling their stake in the company in large chunks over the past few months, leaving only 7.3% to be sold off.
It’s expected that the U.S. Treasury will no longer have any stake in GM by the end of March 2014. Recently, more than 110 million shares between May 9 and September 13 had been sold, netting the government agency $3.82 billion.
Those 101 million remaining shares are currently worth $3.7 billion based on the current share price, with GM stock closing at $36.83 per share as of September 20th. That also means the Treasury is assumed to lose a total of $10 billion from the bailout, which is much less than early estimates of $20 billion. In order to recoup the full amount, it was reported in July that GM stock would need to be worth over $95 per share. While we don’t see that share price coming anytime soon, it is in fact possible.
On a final note, Treasury Assistant Secretary Timothy Massad said: “We remain on track to complete our exit from GM by early next year at a cost far less than originally projected.”