Sunday, December 22, 2012 – 11:30 a.m.
The U.S. Treasury has announced it will begin to liquidate its stake in General Motors at a huge loss. A loss so significant it will likely wipe out any profit from the bank bailout.
Why? The Treasury is about to bump up against the current debt limit and needs the money to pay bills.
The immediate sale, back to the company, of 200 million shares of stock at $27.50 each, would give the Treasury $5.5 billion in cash and peg the current net loss to taxpayers at some $15.3 billion.
Over the next year and a half Treasury intends to sell its remaining holdings in the automaker’s stock. If the shares hold their current value the government’s loss may shrink to just below $10 billion.
Just a thought…..