Last month, it sold 200 million shares of its GM stock to the Detroit automaker for $5.5 billion, or $27.50 a share.
In order to prevent hedge funds and other investors from taking advantage, the Treasury doesn't make the training plan public. The plan places limits on how much stock can be sold at any given time and at what prices. Government officials also can provide the banks direction on when they should sell additional shares.
This week, the Treasury named Citigroup Inc. and JPMorgan Chase & Co. to manage the sale. They will get a 1 cent per share commission — or $3 million — for the sale of the entire stake.
The Treasury has said it "intends to sell its shares into the market in an orderly fashion and fully exit its remaining GM investment within the next 12-15 months, subject to market conditions."
The Treasury said there will be opportunities for smaller broker dealers, including women and minority-owned broker dealers, to participate in the sale of Treasury's remaining GM common shares pursuant to the plan.
The government needs to get $72 per share for its remaining shares to break even on its $49.5 billion GM bailout. It initially held a 61 percent stake before selling about half of its shares in GM's November 2010 IPO at $33 a share
GM shares fell on Friday in afternoon trading to $29.21, down $0.28, or 1 percent. At current prices, the Treasury would lose more than $12 billion on its GM bailout.
The Treasury still holds a 74 percent stake in Ally Financial, the Detroit-based auto finance firm, as part of a $17.2 billion bailout.
GM chief financial officer Dan Ammann said this week the automaker has no plans to buy any of the government's remaining shares.
From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2IKhc7QxA