Romney Urges Move That Would Cost $14 Billion
Mitt Romney wants the government to sell off its General Motors stock, which would incur great losses for the taxpayers.
“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.Click here for reuse options!
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