Government Motors is no more.
The U.S. Department of the Treasury today said that it has sold all of its remaining shares of General Motors (GM) common stock. Treasury in a statement said it recouped a total of $39 billion from the original GM investment. Taxpayers in 2009 gave GM $49.5 billion in loans ($50 billion including loans for the Supplier and Warranty Programs) in exchange for $2.1 billion in preferred stock and a 60.8% equity stake in the reorganized company. Treasury has been selling the stock since late last year. The UAW owns 9% and the Canadian Government 7%. The balance is now privately held and publicly traded.
“With the final sale of GM stock, this important chapter in our nation’s history is now closed,” says Treasury Secretary Jacob J. Lew. “The President understood that inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production. As a result of his efforts, which built on those of the previous [Bush] Administration, more than 370,000 new auto jobs have been created, and all three U.S. automakers are profitable, competitive, and growing.”
To date, Treasury has recovered a total of $432.7 billion on all TARP investments – including the sale of Treasury’s shares in AIG – compared to $421.8 billion disbursed. Treasury will continue to wind down the remaining investments in a manner that balances maximizing the taxpayer’s return on investments with the speed of our exit. (Treasury Out of General Motors Stock by Year End and Economist Says Auto Bailouts Saved More than 4 Million Jobs)
“Today is not dramatically different from the hundreds of preceding days during which we have worked to make GM a company our country can be proud of again,” says GM CEO Dan Akerson. “Continued investments, innovation, and job creation are just some of the ‘returns’ of a healthy GM and domestic auto industry. Our work continues uninterrupted, and we will keep our sights squarely on our customers and transforming the way we do business.”
