Going, Going, Gone: Treasury Sells $2B in GM stock in June
General Motors Co. (NYSE:GM) is reeling in more good news. As the U.S. automaker works to recover from losses it sustained during its 2009 bankruptcy blunders, it has posted impressive sales this spring and summer.
Following 13 straight profitable quarters and a rising share price that reflects solid investor confidence, GM rejoined the S&P 500 in June after the Treasury reported an additional selling of 30 million of its shares. The news reflects another step in the right direction for GM, and although the Treasury isn’t expected to make its full exit until the first quarter of 2014, the automaker has made it clear that it is well on its way to a full comeback.
And recent reports illuminate that the U.S. Treasury stock sales will just keep on coming. The agency reported Wednesday that it sold nearly $2 billion in GM stock in June, allowing the government to assuage critics with the good news that the U.S. expects to now only lose $17.9 billion from the $85 billion GM bailout. This estimate of losses could decrease even more as GM’s stock price rises.