Treasury Department to Begin Selling Off Remaining GM Stake
The Treasury Department said on Friday that it would be selling off its 19 percent remaining stake in General Motors (NYSE: GM). The Treasury said that it has begun to execute a prearranged trading plan to dispose of its 300.1 million share stake in the company over time. The Obama administration's goal is to completely unwind the position by early next year.
Investment banks Citigroup (NYSE: C) and JPMorgan Chase (NYSE: JPM) have been hired to lead the sales, according to Dealbook. The liquidation will be done so as not to dramatically effect the share price of GM. Instead of large block sales, smaller share increments will be sold over time with an eye towards market conditions.
In December, General Motors bought back a $5.5 billion block of shares from the government. Dealbook reports that the stock sale could generate a $12 billion loss for taxpayers.
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