The United States Treasury Department received an $11.7 billion wire transfer today from its proceeds from the sale of 358.5 million shares of stock in General Motors Co. The U.S. government’s sales of about 40 percent of its 61 percent stake in General Motors at $33 a share helped generate $11.74 billion.
“Our temporary assistance for the U.S. auto industry saved more than one million jobs across the industrial heartland of America and, like the overall TARP program, is on track to cost far less than anyone had first anticipated,” said Tim Massad, the Treasury’s acting assistant secretary for financial stability. “General Motors’ successful initial public offering is another important milestone in our efforts to recover TARP funds on behalf of the American taxpayer.”
GM’s IPO underwriters have until Dec. 18 to sell another 15 percent of the shares, or another 53.8 million shares held by the government. If the underwriters exercise that option, the U.S. Treasury will receive another $1.8 billion in net proceeds.
– By: Omar Rana
Source: Detroit News