The American tax payer continues to lose controlling interest in the General Motors Company. GM received billions of dollars in bailouts during the recession, under the excuse of it being too big to fail. The United States government took over control for a brief period when the company entered bankruptcy proceedings. The company came out of bankruptcy earlier this year, still owing money to many of its creditors. Despite its problems, GM announced an initial IPO which caused its stock prices to rise sharply from the time. Banks have continued to invest in the company, even as private investors look for other sources.
How Much Are The Banks Investing
The total that banks have put into the restructured company is about 2.37 billion dollars. When the company initially made its offering after restructuring, investors seemed eager to pick up additional shares on Wall Street. Brokers had a hard time keeping up with demand when the ticker once again appeared on the Dow stock exchange. The price of General Motors stock rose an additional 15 percent as banking firms announced their involvement. Taxpayers are most interested in knowing if the trouble automaker will be able to repay the investment the government made in the firm.
Government Still Owns Large Share of GM
The Federal government still owns about one-third of the company, which means Americans will still see cars that do not adequately reflect the vehicles they actually want. Hybrid and electric vehicles, such as the Chevy Volt will continue to stay on the market, even if they do not turn the profit that the government hopes. Greener vehicles have not necessarily sat well with the American public, especially when gas prices are relatively low. For the government to regain the money it spent the remaining shares of the company need to sell for $50 a share.