General Motors CEO Dan Akerson is looking forward to the day when he can relax on his yacht, sipping Mai Tais on the deck…and knowing full well that the federal government has finally sold its stake in GM, and has completely divulged itself from the company as it did with Chrysler.
But it’s still a long way until the government can recoup its shares from taxpayers, acknowledged Akerson. GM has technically already repaid its debt to the Treasury Department: the $50 billion it received in 2009 came in the form of equity stakes, which were held by the Department. But according to a recent report by the White House National Economic Council, the government will have to write off about $14 billion of the $80 billion total bailout—money that was supplied by taxpaying Americans.
GM’s executives are “doing our level best” to recover this amount, said Akerson. The company has made five consecutive quarterly profits and managed to earn $4.7 billion last year, and if things go well the Treasury can sell its shares as soon as August.
[Source: New York Times]