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GM stock lower amid report of quick govt sale
AFP ^ | 04-19-2011 | Staff

Posted on 04/20/2011 5:47:52 AM PDT by Red Badger

NEW YORK — A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday.

After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59.

The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper.

The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share.

At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.

The summer sale would make it more likely that the government could unload the remainder of its shares before the 2012 election season.

But officials said planning is still at an early stage and the Treasury Department was still considering options that would protect taxpayers while ending its stake in the company as soon as practicable.

The paper added that GM would back the sell-off because it would lift restrictions on executive pay that remain in place as long as the government is part owner.

Marking its successful emergence from bankruptcy in July 2009, GM raised $23.1 billion last November in the largest public offering in history.

(Excerpt) Read more at google.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Government
KEYWORDS:
11 BILLION DOLLARS GONE...............
1 posted on 04/20/2011 5:47:54 AM PDT by Red Badger
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To: Red Badger

Bo needs cash to buy votes!


2 posted on 04/20/2011 5:50:36 AM PDT by DCmarcher-976453 (SARAH PALIN 2012)
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To: Red Badger
the government would lose more than $11 billion, but the Obama administration is willing to accept the loss

Why not? It's not his money!

3 posted on 04/20/2011 5:51:16 AM PDT by ClearCase_guy
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To: Red Badger

The first order of Business for our new congress should of been IMPEACHMENT over this whole GM Fiasco, They out and out STOLE it from the Bondholders and then Gave it all to the Unions, now We the People are supposed to pay all the Losses??
When will enough be enough???


4 posted on 04/20/2011 5:53:51 AM PDT by eyeamok
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To: Red Badger
The government sale would "almost certainly" mean that US taxpayers would take a loss

Duh.
But the unions got theirs... and will again work to re-elect Obarry.
Mission accomplished.

5 posted on 04/20/2011 5:54:12 AM PDT by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)
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To: ClearCase_guy

As tax paying Americans we should boycott GM. Let them sell cars in China.


6 posted on 04/20/2011 5:54:48 AM PDT by utherdoul
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To: Red Badger
He added: "I think the government is going to make a lot of money ... It will prove to have been a great investment." - GM Chief Executive Ed Whitacre (on the Government bailout)
7 posted on 04/20/2011 5:55:26 AM PDT by mnehring
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To: ClearCase_guy

I predict that when the gov stops propping up this Jenga tower, they will crash again. Will Zero bail them out a second time? The underlying problems the caused the first crash are still there...........


8 posted on 04/20/2011 5:55:51 AM PDT by Red Badger (Mitt Romney: The Harold Stassen of the 21st century........)
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To: ClearCase_guy

9 posted on 04/20/2011 5:57:24 AM PDT by Red Badger (Mitt Romney: The Harold Stassen of the 21st century........)
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To: DCmarcher-976453

Typical DemoRAT scam. By eliminating the GM deal, closing it out the DemoRATS will chide, denigrate any of their opposition mentioning the handling of GM, the failure to protect the taxpayer, etc. as a fool bringing up “old news”.

We’re going to hear a considerable amount of condescending verbosity about “old news” this coming election cycle.


10 posted on 04/20/2011 6:01:31 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: Red Badger
But we saved the union goons pensions!

*sigh*

11 posted on 04/20/2011 6:03:26 AM PDT by TexasFreeper2009 (Obama = Carter 2.0 The Epic Fail Edition)
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To: DCmarcher-976453

Bo needs cash to buy votes!

BO needs this turkey off his hands before the TV
ads start running next summer.


12 posted on 04/20/2011 6:08:33 AM PDT by Buckeye McFrog
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To: Red Badger

Right, It’s not their money, they don’t CARE about how its spent, except to further their leftist goals


13 posted on 04/20/2011 6:10:51 AM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: Red Badger

probably


14 posted on 04/20/2011 6:12:07 AM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: Red Badger
How can the government lose money on the GM deal?

GM paid back everything with interest!

The Chairman said so on national TV.

< /sarcasm >

15 posted on 04/20/2011 6:12:43 AM PDT by N. Theknow (A gun in the hand, beats a cop on the phone.)
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To: Red Badger

I hate, despise, and loathe GM.

Destroy them all...well, almost all.....

But......

Keep the Corvette!


16 posted on 04/20/2011 6:13:28 AM PDT by Da Coyote
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To: Red Badger

” At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in “

Boy, it’s a good thing that the Obama Gang isn’t in charge of my pension fund....

Oh - wait....

Cr@p....


17 posted on 04/20/2011 6:18:53 AM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: Red Badger
GM stock lower amid report of quick govt sale ...

... and now steering wheels will quit falling off cars and golf carts
will no longer burn up in garages while charging ... maybe

18 posted on 04/20/2011 6:23:41 AM PDT by Zakeet (I know Obama is level headed because he drools out of both sides of his mouth at the same time)
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To: Buckeye McFrog
BO needs this turkey off his hands before the TV ads start running next summer.

DING, DING, DING, DING!

We have a winner!

19 posted on 04/20/2011 6:29:51 AM PDT by Thermalseeker (The theft being perpetrated by Congress and the Fed makes Bernie Maddoff look like a pickpocket.)
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To: Red Badger
How possibly could dumping 1/2 billion shares of stock cause a problem with the value?

Damn these idiots are total economic illiterates.

20 posted on 04/20/2011 6:39:02 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: eyeamok
The first order of Business for our new congress should of been IMPEACHMENT...

Just as long as shrub gets impeached too - after all, he started the bailout crap.

21 posted on 04/20/2011 6:42:03 AM PDT by LIBERTARIAN JOE (Don't blame me - I voted for Ron Paul!)
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To: Jim from C-Town
Damn these idiots are total economic illiterates.

You're being too kind. An 'illiterate' can be taught. They are INCOMPETENTS..............

22 posted on 04/20/2011 6:44:52 AM PDT by Red Badger (Mitt Romney: The Harold Stassen of the 21st century........)
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To: Red Badger
I stand corrected.
23 posted on 04/20/2011 7:23:18 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: Jim from C-Town

I dread to think that they are neither ‘illiterate’ nor ‘incompetent’, but purposefully destroying the economy................


24 posted on 04/20/2011 8:33:07 AM PDT by Red Badger (Mitt Romney: The Harold Stassen of the 21st century........)
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To: Red Badger

It’s not destroying the economy when Obama does it he call it change and investing,media nods.


25 posted on 04/20/2011 10:28:14 AM PDT by Vaduz
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To: Red Badger

“The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM’s stock is currently hovering at a price of just under $30 per share.

Will ANY Republican have the BALLS to shove Obama generated mess right up Barry’s ass?

The time has come. Well, are there any men willing to kick this pu$$y$ ass?

If not, I go 3rd party! Next stop, New Zealand.


26 posted on 04/20/2011 10:34:40 AM PDT by gathersnomoss
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27 posted on 04/20/2011 10:35:16 AM PDT by TheOldLady
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