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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.
Washington — Republican Mitt Romney believes 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.
In a wide-ranging half-hour interview with The Detroit News, the presumptive GOP nominee also said he'd review pending rules that will require automakers to almost double fuel efficiency requirements by 2025, and believes Detroit may need a leadership change in order to fix its nagging financial problems.
As part of the government's GM bailout, the U.S. Treasury still holds a 26 percent stake in the Detroit automaker, and has been sitting on that share for 35 months.
Romney vows quick U.S. exit from GM
I'm still trying to figure out why we bailed out any of these companies.
Originally posted by neo96
Romney is right as long as Government is involved with GM that stock will never go up.
The demand for any given stock makes the price go up and that in turns raises capital that the business can use for other purposes/
Obama is wrong and hasn't a clue,and should have never gotten involved.
Originally posted by neo96
...the same reason that we saw with the $787 million dollar stimulus...
I see Romney doesn't own any GM stock. He doesn't care about American companies.