U.S. Release Remaining Shares of General Motors

U.S. Release Remaining Shares of General Motors

After a period of five years , four main directors , and the largest bankruptcy in the history of the United States ( U.S. ) , the government is ready to release the remaining shares in General Motors ( GM ) .

The move will close the sheet the story of one of the largest and most controversial intervention against U.S. corporations by the government .

Ministry of Finance on Thursday unveiled plans to sell 31.1 million shares in GM at the end of the year . It was to be the last step in the trim 61 % ownership in the company .

At last count , the deal would cost the taxpayers of $ 10.4 billion to be based on the current share price , which is $ 38.12 per sheet . So far , the U.S. has recovered $ 38.4 billion of the $ 50 billion that was originally invested . Upcoming sale will contribute $ 1.2 billion , with current stock price .

Benefits bailout is not only measured in dollars alone , and do not incorporate the company and community that was saved from the possibility of bankruptcy . The U.S. auto industry has recovered almost all jobs that had disappeared at the beginning of the financial crisis . The sector is now back to raise funds and start re- expand .

These interventions changed the relationship between the U.S. government and the business sector , terminate the bankruptcy protection for holders of debt securities , and provide greater opportunity for engagement to the workers .

However , many analysts believe the government intervention helped save the jobs of tens of thousands of GM , Chrysler Group , Ford Motor even , who did not receive bailouts .


The rescue action is a series of injections of funds in order to stop the financial crisis . The government got the profit of the banking bail out the U.S. action , but will not fully restore aid to the automotive industry .

The vehicle assemblers in Detroit is now in a slimmer and healthier condition . However , these companies should continue to compete with foreign firms in order to maintain market share in the U.S. , in addition to the challenge to master the fast -growing economies such as China . ( WSJ )