Treasury Revises Bailout Losses Downwards To Only $20 Billion

The Treasury Department said Monday its estimate of losses on the $85 billion auto bailout fell by 16 percent, or $4 billion, in large part because of a rebound in General Motors Co.'s stock price.

The Obama administration said in a report to Congress that its projected auto losses fell to $20.3 billion, from its prior quarterly estimate of $24.3 billion.

The Treasury in 2009 initially forecast it would lose $44 billion on its bailout of General Motors Co., Chrysler Group LLC and their finance arms. That forecast fell to $30 billion by the end of 2009 and fell as low as $14.3 billion in 2011.

In December, the Treasury sold 200 million shares of its 500-million share stake in GM for $5.5 billion, reducing its holdings in the Detroit automaker to 19 percent. But the sale was far below the breakeven price and the Treasury now needs to average about $70 a share on its remaining stake to break even.




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Agent009 - 2/11/2013 3:57:17 PM

+4 Boost

Actually this was more to save the unions than the automakers.

So 355,000 members in 2009 @ $20,000,000,000 equals only $56,000 per UAW member at the time. I guess that "loan" was basically a "gift".

Will I at least get a Christmas card?

quizz - 2/11/2013 4:40:15 PM

+4 Boost

American taxpayers duped once again.

PUGPROUD - 2/12/2013 7:19:30 AM

+3 Boost

President Obama to Treasury Secretary "How much is 1 + 1 ? " Treasury Secretary to President Obama " How much do you want it to be ?"

bfghemicuda - 2/12/2013 6:27:43 PM

+1 Boost

The smoke and mirror Obama Administration spinning numbers again.