Panel: Sale of GM stock can trim recovery of the taxpayer (AP)

WASHINGTON - in selling a block its shares of General Motors Co. for $33 - a price well below "cost-effectiveness" - the Government reduces chances of taxpayers fully recover their investment of $ 50 billion in giant of the automobile, a new report by watchdog said Congress.

The Department of the Treasury earned a "major recovery" assistance from the taxpayer, $ 13.5 billion, by selling a piece of its stock of GM in November, Congressional Oversight Panel said in a report released Thursday. And the rescue plan of 85 billion in GM, Chrysler and auto lender GMAC - now known as financial ally - seems to be wearing their "on the road to financial stability," said the report.

But the companies still face uncertain future taxpayers remains at risk and there are concerns about the opening of the Government in the unprecedented rescue package said the report.

Without the rescue of Bush and Obama administrations from December 2008, GM, Chrysler and GMAC reportedly the financial abyss, says the report. Their failure would be crushing blow to the economy.

The administration of the Obama said that the rescue was necessary to prevent the loss of at least one million jobs and economic devastation in the industrial Midwest. Administration officials said that they should never recoup the full investment.

An earlier estimate by the Congressional Budget Office that taxpayers would lose $ 40 billion on the rescue of the automotive industry has been reduced to $ 19 billion, the Oversight Committee noted.

GM was pushed into bankruptcy protection by the administration of the Obama. It appeared in 2009 with cleaned of its staggering debt balance. The company made a shift in impressive losing billions before its restructuring to display profits $ 4.2 billion in the first nine months of last year.

Still, report says, through the sale of 45 per cent of its shares of GM for $33 each in 15.8 billion initial public offering the automaker in November, treasure "locked" loss of billions of dollars and reduced likelihood of full refund for taxpayers. "Viability threshold" price necessary to is from $44.59 per share, according to the report.

Officials say that stock GM averaged 3% just over $ 33 in the months following the introduction in stock, confirming that it was fairly priced.

"It is always tough decisions", Senator Ted Kaufman, D-., Chairman of the Committee, said in a conference call with reporters Wednesday. The Treasury Board "may have been reasonable" decisions but the objectives of the rescue package should have been more clearly defined, he said.

GM share price has increased as the company received better than many expected. It closed Wednesday at $38.62. If the trend continues, it is possible that taxpayers could do together.

The new report:

_said that the prospects for recovery of the taxpayer to Chrysler are reduced because the Government has only 10% of the shares of the company and therefore has limited influence on the time of the initial public offering.

_criticized what he called "hands off" approach to the Treasury Board financial Ally, not always assert its influence when facing an eventual IPO. The Department also refused to block GM of AmeriCredit, purchase even if this finance company may end up competition against Ally financial, he said.

_said Government help to prevent the GM and Chrysler to not "developed more competently managed car companies at a disadvantage," referring to Ford Motor Co.