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.
The former Chief Restructuring Officer at the U.S. Department of the Treasury says the government could end up making $20 billion on the AIG bailout
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.
The Federal Reserve's policy of low interest rates allows the government to borrow money at little cost. But analysts predict it's just a matter of time before interest rates shoot back up.