Citi, JP Morgan named managers for GM stock sale
WASHINGTON (Reuters) - The U.S. Treasury has picked JP Morgan and Citigroup to manage the sale of the government's remaining shares in General Motors Corp, according to documents posted on Treasury's website, as it continues to exit from the controversial bailout.
The sale, which was announced in December, will help recoup part of GM's $50 billion federal rescue, but is still likely to leave U.S. taxpayers facing a multibillion-dollar loss.
The government raised $5.5 billion when it sold 200 million shares back to GM last month, and said that it would divest of the remaining 300.1 million shares over the next 15 months, starting in January.
The auto giant was saved as part of the Troubled Asset Relief Program (TARP) created by former President George W Bush to fight a widening financial panic in 2009 that threatened to collapse the U.S. banking system.
(Reporting By Alister Bull; Editing by M.D. Golan)
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