UPDATE 1-U.S. to sell rest of GM shares by year-end, may lose $10 bln
WASHINGTON, Nov 21 (Reuters) - The U.S. Treasury Department said it expected to sell its remaining shares of General Motors Co by the end of the year, a plan that may leave taxpayers with a shortfall of about $10 billion on the automaker's 2009 bailout.
Treasury on Thursday said it had completed the sale of 70.2 million shares of GM stock and to date had recouped $38.4 billion from the $49.5 billion taxpayer-funded rescue of the Detroit company.
At current prices, Treasury would recoup another $1.2 billion from the remaining stake, bringing its total recovery to $39.6 billion.
The shares were acquired as part of the bailout of GM, which filed for Chapter 11 bankruptcy in June 2009.
"While the U.S. Treasury's equity stake draws to a close, our work to transform GM continues," GM said. "We're making great progress in our efforts to make the most of this second chance."
A Treasury statement said: "If average daily trading volumes continue at recent levels, Treasury anticipates that it will complete the sale of its remaining shares by the end of the year. However, that schedule remains subject to market conditions."
GM stock was up 3 percent at $38.83 in morning trading.
(Reporting by Timothy Ahmann in Washington and Paul Lienert in Detroit; Editing by Lisa Von Ahn)