Government Down $16 Billion on GM Bailout
1:27 PM, Jun 5, 2012 • By DANIEL HALPER
Mitt Romney maintains that "President Barack Obama is holding on to the government's stake in General Motors to avoid an embarrassing financial loss before the election, and says he'd sell the stock quickly if he wins the White House," according to the Detroit News, which recently interviewed the Republican presidential candidate.
"There is no reason for the government to continue to hold (its GM stake)," Romney tells the news outlet. "The president is delaying the sale of the shares to try and avoid the story that the taxpayer took another loss. I would get the company independent from the government and run for the interests of the consumer and the enterprise and its workers -- not for the political considerations of government officials."
And that's the political reason: If it were to unload its shares today, the government would lost $16 billion on the deal. "At GM's Monday closing price of $21.11 a share, the government would lose $16 billion on its $49.5 billion bailout," the Detroit news reports.
Romney believes that this reason alone is why Obama won't sell the shares--since it would not be the politically expedient thing to do.
The government still owns 26 percent of GM, as it has for almost the last three years.