US Government sells $489 million in GM stock in February
The Treasury Department is not providing full details on the sale of General Motors stock each month, instead just announcing the dollar value of the GM stock sold during the past month. Among the details not included in these monthly statements is the exact number of shares but we can get a rough estimate based on the number of shares sold and the average price per share of GM stock during that selling period.
Through the month of February, the US Government sold $489.9 million worth of General Motors common stock with help from investing firms Citigroup Inc and JPMorgan Chase & Co. Based on the average price of GM stock in February, we can surmise that the two assisting firms sold between 17.2 million and 18.1 million shares of GM common stock from the pool of 300 million or so shares that the government is looking to sell off over the next 12-15 months. When you add in the $156.4 million worth of GM common stock sold in the short business month of January, the government has pulled in almost $650 million from selling the stock issued as repayment for the bailout loans of 2008/2009.
On top of the GM common stock sold with the help of Citibank and JPMorgan over the past two months, the US Government reported a sale of 200 million shares of GM stock to the automaker itself in December. That brought in some $5.5 billion dollars at the price of $27.50 per share. GM stock is currently trading in the range of $28.30 per share so the government (and the American taxpayer) is making more money on the slow, public sale of the GM stock than they did in selling that big chunk of stock back to the company late last year.