As the U.S. Treasury continues to remove the “government” from what has been disparagingly called “government motors,” the department’s monthly report to Congress for July reported another $877 million in GM stock sold.
This is part of the government’s ongoing plan announced in December to divest itself of GM stock within 12-15 months.
The government also sold 58 million shares in April for its first GM stock sale, making about $2 billion from this transaction. In June the Treasury sold another 30 million shares to the public as part of GM’s return to the S&P 500 Index. The government earned $1.03 billion from this for the U.S. taxpayers.
Federal ownership of a portion of the automaker began in December 2008 under the Automotive Industry Financing Program. The 2009 bankruptcy organization was ultimately funded by the U.S. and Canadian governments in 2009.
Canada is also in process of selling of its stake in GM.
July saw GM trading between $34 and $37 per share. It’s believed the federal government sold between 24 million and 26 million shares at market price, but confirmation was not offered by GM or the Treasury.
In December GM repurchased 200 million shares of its own stock from the Treasury when plans to sell 300 million were first announced.
With the latest sale in July, out of an initial $51 billion investment in GM by way of repayments. Stock sales, dividends and other forms of income, the Treasury says it has earned $35 billion.