Treasury set to unload General Motors shares

{mosads}In May, the Treasury announced it had commenced the second stage of its exit and would begin selling off its remaining GM shares.

The government is expected to lose money on the GM bailout once all shares in the company are sold.

In October, the Congressional Budget Office estimated that the GM bailout would ultimately carry a price tag of $20 billion, while the Office of Management and Budget has estimated the cost would be $25 billion.

Under the Treasury’s plan, the government would sell about half its holdings in GM to the company at $27.50 a share, but the government’s official bailout watchdog had estimated the government would need to sell its GM shares at a price of $53.98 to break even.

The government also suffered a loss in its rescue of another domestic car company, Chrysler. In 2011, the government exited its rescue of the company six years ahead of scheduled, carrying a price tag of less than $2 billion.