The government's plan to get out of General Motors: Too soon?

A new plan to sell GM shares will likely cost taxpayers billions of dollars

The first 2013 Cadillac ATS rolls off the assembly line at the General Motors Lansing Grand River plant on July 26.
(Image credit: Bill Pugliano/Getty Images)

Critics of the Obama administration won't have "Government Motors" to kick around anymore. The Treasury Department on Wednesday announced that it would sell its entire stake in General Motors within 15 months, bringing to close a controversial $50 billion bailout that saved more than 1 million jobs. GM will buy back 200 million shares for $5.5 billion, or $27.50 a share, an 8 percent premium on GM's closing share price on Tuesday. That will leave the Treasury with 300 million shares, equivalent to 19 percent of the company, which the government plans on selling in small batches.

The deal is part of a push by the government to wind down the billion-dollar bailouts that proliferated during the financial crisis. Last week, the Treasury sold its remaining shares in AIG, ending a bailout that had once ballooned to $180 billion. The Obama administration almost sounds relieved to be disentangling itself from the private sector. "The government should not be in the business of owning stakes in private companies for an indefinite period of time," said Treasury Assistant Secretary Timothy Massad.

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Ryu Spaeth

Ryu Spaeth is deputy editor at TheWeek.com. Follow him on Twitter.