U.S. Treasury won’t sell shares in GM before August

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The Treasury Department apparently won’t be selling any of the shares that comprise its 26.5% stake in GM anytime before August, and could wait until as late as 2012 to completely divest its stake.

According to a source who was briefed on the matter, the government plans to divest the rest of its shares over the course of two sales, none of which are planned to include the sale of GM stock back to GM.

The Treasury would prefer to wait until the price of the stock rebounds a bit before selling it. With current prices, there stands to be an approximate loss of $9.5 billion. So far, the government has recovered $23.5 billion of its $49.5 billion bailout of GM.

– By: Stephen Calogera

Source: Detroit News