The government is getting closer to selling all of its General Motors Co. stock.
“There’s no question that Treasury, the taxpayers, are going to lose money on the GM investment,” said Special Inspector General Christy Romero.
There seems little appetite from either Democrats or Republicans in Washington for a federal rescue of the birthplace of the automobile industry.
The U.S. government plans to sell another 30 million shares of General Motors stock in a public offering on Thursday as it speeds up efforts to divest itself from a stake in the auto giant that it got in a bailout four years ago.
General Motors, trying to clear the stigma of being partly owned by the U.S. government, will spend $5.5 billion to buy back 200 million shares of its stock from the treasury.
Romney negotiated a $10 million federal bailout for his company, but has called for foreclosures to be allowed to “hit bottom” and letting Detroit go bankrupt.
President Obama says those who opposed government aid to the auto industry are “rewriting history.”
“Where this got all messed up is when the government and the executive branch started rewriting the rules (to) whatever they wanted,” said Pete Hoekstra, one of several Republicans vying to take on Democratic incumbent Debbie Stabenow.
President Obama’s former car czar Steven Rattner,says the government should hang on to its stake in General Motors, even if it’s not the politically expedient thing to do.
The Obama administration says the government will lose less than 20 percent of the $80 billion used to bail out the U.S. automobile industry.