U.S. Treasury Sells Final Shares in General Motors

The U.S. helped bail GM out with $49.5 billion in investments in exchange for an ownership stake

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The United States Treasury has sold off the last bit of the 912 million shares in General Motors it received when it bailed out the automaker in 2009 under the Troubled Asset Relief Program (TARP).

General Motors said in a press release that the bailout saved 1.2 million jobs. However, taxpayers wound up paying approximately $10 billion to save GM, according to the Detroit News.

Secretary of the Treasury Jack Lew announced the sale Monday.

“The President’s leadership in responding to the financial crisis helped stabilize the auto industry, and prevent another Great Depression,” said Lew in a statement. “With the final sale of GM stock, this important chapter in our nation’s history is now closed.”

President Barack Obama also released a statement on the sale.

“Today, we’re closing the book by selling the remaining shares of the federal government’s investment in General Motors,” said Obama. “GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration.”

The government’s total recovery from all TARP investments is about $432.7 billion, according to the Treasury Department.

[Detroit News]

9 comments
bobwheels
bobwheels

well another stupid move by the us treasury.had they waited, on Mon.Dec. 16 , general motors stock price was up well over $1.00 take that times the number of shares and the "loss" would have been much smaller.then again ,who cares?? it was only taxpayer money......stupid,stupid stupid..

JonGibson
JonGibson

There are far too many stupid people in the world.  

TenaciousJim
TenaciousJim

That's a laugh 'The Center for Automotive Research' says the Government made a good deal.  

bmorg02
bmorg02

Can you say spin? The government just bailed out its union cronies. They should have just let them go bankrupt. Those jobs would have died but people would have continued to purchase cars from non union shops in the South (Kia, BMW, etc) and new jobs would have been created at these shops. Final tally would have been same number of US jobs, government has 100 billion more to invest wisely but Democrats would get less union donations, hence the real reason the bailout happened.

ReformedRep
ReformedRep

So per the report the nation saved over $100 billion in lost tax revenue by spending $10B to save the industry and 1.2M jobs.

A 10X return for this "socialism" looks pretty good.

mantisdragon91
mantisdragon91

Not quite. You see we would have lost all those auto parts suppliers that depended on GM and Chrysler for survival. Not to mention you would have seen a ripple effect to the economy of Mid West states.

Nivek1085
Nivek1085

@ReformedRep  I look with tremendous skepticism on any claims that I'm being saved money when I'm simultaneously being presented with an bill worth 11 figures. 

Nivek1085
Nivek1085

@mantisdragon91   It was very much about bailing out the union jobs (democrat votes).  Thus the abrogation of established bankruptcy law burning GM creditors in favor of bailing out union pensions.  If it were simply about saving jobs in general they could have put the company through bankruptcy and restructured rather than propping the same old unsustainable business model.  GM will be insolvent /in crisis again within our lifetimes, mark my words.