US exits GM stake: taxpayers lose about $10 Billion
- Wired World
- 10 Dec 2013 (South Africa)
The US. government sold its last shares of General Motors Co on Monday, leaving taxpayers saddled with a total shortfall of about $10 billion on the automaker's 2009 bailout.
"With the final sale of GM stock, this important chapter in our nation's history is now closed," Treasury Secretary Jack Lew said.
Washington came to the rescue of the U.S. auto industry during the darkest days of the country's 2007-09 financial crisis.
The government's exit could benefit GM in several respects. The company has carried a certain stigma since taking $49.5 billion in government money four years ago.
"They can finally put 'Government Motors' in the rear view mirror, and that's an important step for consumers and for the company," said Matthew Stover, an auto analyst at Guggenheim Securities.
Photo: The sign at a General Motors Chevrolet dealer is pictured in Golden, Colorado (REUTERS/Rick Wilking)