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Originally Posted by The Stig
Ummmmm - did you read the article? GM isn't the one losing the money, its the Department of the Treasury - which IMO is because they are choosing to unload all of their remaining shares at once instead of slowly selling them like they had originally planned. They're flooding the market with GM shares (and announcing that they're going to flood the market didn't help either), it's only to be expected that GM stock will temporarily dip because of it.
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The Treasury is going to lose a ton of money on the deal regardless of when they sell because GM stock with the current share structure will never be worth the near $80/share required to recover the total. Also, you didn't seem to read the article yourself. The Treasury is not unloading all of their shares at once, not even close. They hold over 240 million shares and are only selling 30 million.
The planned sales are pursuant to SEC rule 10b5-1. Announcing the plan to sell publicly protects the Treasury from potential insider trading charges. Having access to material non-public information makes trades without a 10b5-1 plan nearly impossible to do legally. It would be an incredibly huge mistake for the Treasury to sell without a 10b5-1 plan.