Now that the GM share finally is trading a wee bit above its IPO price, The Treasury is eager to bail from the bailout. The government’s fiance department announced “plans to sell 30 million shares of General Motors Co common stock as part of its ongoing effort to wind down the government’s stake in the bailed-out automaker,” Reuters says.
On June 6, the formerly disgrace stock will rejoin the S&P 500, which usually provides a lift, because index funds must buy the stock. That’s when the gov’s shares will sold, along with 20 million shares of GM stock held by the UAW Retiree Medical Benefits Trust.
Nonetheless, the “government looks certain to end up billions of dollars in the hole on the cost of the bailout,” Reuters says.