Is Obama Going to Sell GM Stock at Huge Loss to Taxpayers?

Could Be!  Check out this article from J. Robert Smith at American Thinker…

Obama and Geithner Bailing on GM?

Wasn’t the Obama administration supposed to make money back on a sale of GM stock?  Or so Treasury Secretary Timothy Geithner and other administration officials suggested back in 2009.  Now taxpayers learn that Mr. Obama wants out of GM and is willing to sell Washington’s stockholdings short – to the tune of an estimated $11 billion loss.  That’s $11 billion in losses to taxpayers.

Why would Mr. Obama want to dump GMstock for a huge loss now?  Why not hold GM stock until the government can at least recover taxpayers’ money?  The answer is that GM stock prices may be heading south, not north, in the coming months.  According to a Wall Street Journal report, Mr. Obama may have decided to get out of GM while the getting isn’t wholly disastrous.

Government officials are willing to take the loss because the Obama administration would like to sever its last ties to the auto maker, the people familiar with the matter said. A summer sale makes it more likely Treasury could sell all of its stake in GM by year’s end, avoiding a potentially controversial sale in the 2012 presidential election yearRead More >>

Posted by on Apr 21 2011. Filed under Politics and The Market. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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