FX.co ★ Goodbye, GM, goodbye!

Everything comes to an end, even the strongest and longest relationship. The U.S. government and the biggest American corporation General Motors are no exeption. The long-lasting cooperation of these two partners has finished when the U.S. authorities have sold all the shares of the auto producer. This information was announced by U.S. Finance Minister Jack Lew. Talking with the journalists, the economist summarized “sad results” and reported liquidation of the assets. The results are really impressive – purchasing shares during the financial crisis, the government lost $11 billion. The total spent for the securities of the auto producer facing bankruptcy came to $51 billion of budget funds. Four years ago, at the peak of the world financial crisis, General Motors said it was going to start the bankruptcy process as the U.S. auto industry was hit much. The American government supported the legendary auto maker by buying a portfolio of shares that became a great financial aid for the company. It has been not known yet, what was the amount of the last deal, but initially the officials had owned 32 percent. At the beginning of the autumn, the share reduced to 7.3 percent. In mid November, the U.S. Finance Department redeemed $1,2 billion, but it did not specified how much it was on the percentage basis.