The United States Treasury Department said it would sell its remaining shares of General Motors by the end of the year, a position it took once it realized that GM was likely to go bust in the 2008 financial crisis. GM needed some emergency help in the form of bailouts in order to save jobs, lost tax revenue, and reduced economic production. Now that GM has recovered remarkably, the US will begin to sever ties with the company it once saved from the brink of collapse.
Other bailouts that the government provided during the crisis, have turned to be profitable after the market recovered. American International Group's (AIG) stock price has actually recovered nicely up to a point that the US was able to sell what shares it owned from its bailout at a profit. GM and Chrysler, however, have cost taxpayers approximately $10 billion.
The US Government, at the moment, owns about 31.1 million shares, or about 2% of the total outstanding shares of GM. This position is valued at approximately $1.2 billion. It used to own many more millions of shares before selling 70.2 million shares after its previously-announced plans of reducing its position.
In my opinion, GM seems to have recovered very well since the 2008 Financial Crisis. GM shares have been on the uptrend for quite a few months. It has remained above its initial public offering price since April. In fact, this past summer, GM rejoined the Standard & Poor's 500 index. It all seems to be good news and a bright future for GM as it finally severs its ties with the United States Government.