General Motors has just announced it is going to buy back 200 million of its shares from the Treasury Department, which plans to sell the rest of its GM shares in the next year or so.
According to a piece in this morning's Wall Street Journal, the U.S. Treasury's welcome at General Motors is wearing thin. GM is reportedly pushing for the government to sell most or all of its remaining stake — currently about a quarter of the company. But the Obama administration seems to be in no hurry to exit.
Stock sale would reduce the U.S. government's stake in the once-troubled insurance firm to less than half for the first time since it bailed out AIG in 2008.
As investors cope with uncertainty in Europe, the interest on the 10-year Treasury note, the benchmark cost of U.S. debt, hit a record low of 1.6 percent.
With borrowing costs spiking for Spain and Italy, the Obama administration has sent a top treasury official to Europe to encourage European leaders to take decisive action on their financial mess.
