Treasury Fearful Of Selling GM Stock Shares

The U.S. Treasury Department is reluctant to sell part of its 33 percent stake in General Motors Co. to the company at this point because the price is too low, a person familiar with the matter said.

Executives at Detroit-based GM have discussed buying some of the Treasury’s shares or allowing all holders of common stock to sell back shares, said the person, who asked not to be identified revealing private discussions. The Treasury doesn’t want to sell GM while the shares are trading at 13 percent less than the $33 initial public offering price, the person said.

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Steve - 6/8/2011 6:44:32 PM

+3 Boost

Keep in mind, the Feds did not buy the shares at market value when "The New GM" resumed post-IPO trading. They payed WAAAAAAY above GM's last pre-bankruptcy trading price, and the later IPO's initial trade. (Abundant news on the 'Net when the purchase happened, for those who doubt)

Essentially, the Federal Government assisted GM is shifting their multi-billion dollar losses, and relocating them to the owners of those over-priced shares. That would be the Federal Government, who, incidentally, has amassed that debt on behalf of the tax-payer citizens. If you ask me, that sucks :-(