Back in 2009, the U.S. Government jumped to the rescue of General Motors (NYSE:GM) with a $40.5 billion loan — but now the automaker is well on its way out from under the loan these days. According to CNBC, the U.S. Treasury said it has collected approximately $37.2 billion back from the General Motors investment via selling stocks, repayments, dividends, interest, and other means.
In just October the Treasury reported that it had pulled in $1.2 billion in proceeds, and last December it announced that it hoped to be fully removed from General Motors’ finances by March 2014 — meaning that the $2.1 billion it owns in General Motors’ preferred stock will soon be out of its hands. The treasury has decreased its stake from 60.8 percent to around 7 percent at present.
CNBC suggests that the car manufacturer likely sold one-third of its total 101.3 million shares in October, with the average stock price at around $35 to $36 per share, adding up to the $1.2 billion. While the government came out of the General Motors bailout with a loss of $9.7 billion, it said that profit wasn’t the main concern of the Treasury — but rather, job retention was.
Still, that loss of $9.7 billion is only part of its losses, and the Treasury officials have reported that a total loss across the auto industry resulting from bailout actions will total $15 billion. Back in June of 2013, when the U.S. Treasury announced plans to remove itself, it was made clear that the move was necessary back in 2009.
“Troubled Asset Relief Program’s emergency support to General Motors during the financial crisis was necessary to prevent the collapse of the American auto industry and save more than one million American jobs. Earlier this year, Treasury launched an effort to sell its remaining shares in General Motors common stock. “We are pleased with the progress to date and will continue exiting this investment in accordance with our previously announced plan and timetable, and in a manner that maximizes return for taxpayers,” said Tim Massad, the treasury assistant secretary for financial stability — according to the Treasury press release.
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