The government will soon own 70 percent of GM

Whatever the reason for the government initially getting ownership, it should immediately sell it. The WSJ has this:

General Motors Corp. and the United Auto Workers have agreed to a new restructuring plan that would give the union a significantly smaller stake in the company than previously envisioned, and leave the U.S. government owning as much as 70% of the car maker. . . . .

Under the new UAW terms, the union's health-care trust would own 17.5% of a reorganized GM, in exchange for retiree health-care concessions. An earlier revamping worked out by the Treasury Department and GM would have given the union 39% and the government 50%.

The union -- concerned about the GMs prospects -- sought the lower stake in exchange for preferred shares that provide annual income as well as a $2.5 billion note from GM, said people familiar with the situation. . . . .