You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

US to sell GM stake within 15 months

NEW YORK — The Treasury Department plans to sell its entire 32 percent stake in General Motors within 15 months, eliminating another reminder of the bailouts precipitated by the crash of 2008.

The news came a week after the Obama administration sold its entire stake in American International Group, one of the most controversial rescues during the market crisis.

Continue reading below

On Wednesday, the Treasury said it will sell a little less than half of its stake, or 200 million shares, back to GM for $5.5 billion by year’s end. The purchase price of $27.50 is about 8 percent higher than the carmaker’s closing stock price on Tuesday.

The Treasury Department will then sell its remaining 300.1 million shares within the next year to 15 months, depending on market conditions. Those sales could be through stock offerings or other means.

“This announcement is an important step in bringing closure to the successful auto industry rescue,” said Dan Akerson, the carmaker’s chief executive.

The Obama administration stepped in and helped rescue GM and Chrysler in mid-2009 as the two US carmakers struggled. Hoping to forestall a liquidation, Treasury provided financing to the two carmakers and to Ally Financial, GM’s former financing arm.

Ultimately, the administration invested about $49.5 billion in GM, helping guide it through a Chapter 11 filing that shed an enormous amount of debt. It reemerged as a public company in 2010. It has reported rising annual profits for the past two years.

‘‘The government should not be in the business of owning stakes in private companies for an indefinite period of time,’’ said Timothy G. Massad, assistant secretary for financial stability. ‘‘Moving to exit our investment in GM . . . is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests.’’

Loading comments...
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.