The US Treasury Department has finally sold its remaining shares of GM stock, putting to bed its $10.5 billion dollar loss after bailing the company out in 2008-2009. At the time the government received a 60.8% (912 million shares), which it began selling off as soon as the automaker went public in 2010 after filing bankruptcy.
In the end, the fed was only able to recover $39 billion of its $49.5 billion investment. However, not helping the giant automaker during the financial crisis would have had dire consequences for the nation as a whole, remarked Treasury Secretary Jacob Lew.
“Without the bailout, the country would have lost more than 1 million jobs and the economy could have slipped from recession into depression. The economic stakes were high, and President Obama understood that inaction was not an option,” he stated.
Since recovering from bankruptcy, General Motors has racked up almost $20 billion in net income over the past 15 straight quarters, with strong sales in both North America and China. This has allowed it to hire more than 3,000 additional workers (bring its US employment up to 80,000), as well as invest more than $8.8 billion in its facilities here.
Note: Since initiated the Troubled Asset Relief Program, the Treasury Department reports that it has recovered $432.7 billion after spending $421.18 billion (including the hit on GM).