GM to buy stake from Treasury; government may lose billions

The US Treasury plans to sell its stake in General Motors Co over the coming year, all but assuring a multibillion-dollar loss in a move that will end the automaker’s “Government Motors” era.

Treasury’s plan - a two-step process that includes a US$5.5 billion stock sale to GM - is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program. TARP was created by former president George W. Bush to prevent the collapse of the US banking industry during the 2007-2009 financial crisis.

via Business feed http://www.scmp.com/business/companies/article/1108978/gm-buy-stake-treasury-government-may-lose-billions