The United States Treasury Department, which currently holds a 26.5 percent stake in General Motors, said that it plans to be ‘patient’ before selling its remaining 500 million shares in the automaker. The statement came Monday as GM’s stock fell to another all-time low – $19.65 a share.
GM, which is currently down 40 percent since its IPO last year, closed below $20 a share for the first time on Monday.
“We have to balance the goal of divesting these stakes — because the government should not be in the business of owning stakes in private companies — with the goal of maximizing taxpayer returns,” Assistant Secretary for Financial Stability Tim Massad said.
Previously, the U.S. government said that it will sell its shares in GM as soon as ‘practicable.’ Officials now say that the U.S. Treasury won’t sell any shares until after GM reports its third-quarter earnings in November.
– By: Omar Rana
Source: Detroit News