Romney would sell GM stock quickly if elected
Those who criticize the government bailout loans made to General Motors are still unhappy about the fact the US Federal Government is holding onto the 500 million shares of common stock so Romney’s angle of a quick sell is likely to appeal to those voters who oppose the government’s involvement with the suggestion of selling quickly. The problem is that when the 500 million shares of stock were issued as repayment of the bailout loans, those shares were valued at $33 per share but GM stock closed at $21.25 today. This means that if the government sold these 500 million shares at current prices, the government would effectively lose $5.875 billion US dollars strictly from the quick sale of the stock at the current price. This does not take into account the original amount of the bailout loans but all said and done – the quick sale of the 500 million shares of GM stock held by the US Treasury Department would end up costing the US taxpayers around $16 billion dollars.