Romney Urges Move That Would Cost $14 Billion
“The Obama administration needs to act now to divest itself of its ownership position in GM,” he wrote. “The shares need to be sold in a responsible fashion and the proceeds turned over to the nation’s taxpayers.”
Taxpayers have recovered roughly half of the government’s $49.5 billion investment in GM through stock sales and loan repayments.
To break even on the GM bailout, the Treasury Department would have to sell its remaining one-third stake in the company for roughly $53 a share. GM stock is trading at about half that amount, so the government would lose about $14 billion on the deal if those shares were sold today.
Democrats said on Tuesday the government should wait to sell its stake when it can get a better price to minimize the eventual cost of the bailout.
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