Federal TARP Bailout Produced Profit Despite Losing $15 Billion On Auto Industry

Five years after the U.S. government started injecting hundreds of billions of dollars into auto makers, financial institutions and the housing sector, American taxpayers can expect a small profit from an era of historic federal bailouts.

The U.S. Treasury, which pumped out $421.6 billion for its financial-crisis rescues, will have recouped more than $432 billion from bailout recipients once it unloads its remaining General Motors Co.GM -0.24% stock. The Treasury Department, which announced the final steps Thursday, expects to sell the government’s position in GM by the end of the year.

The GM bailout itself hasn’t been profitable and is currently on track to lose more than $10 billion.

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Terry989 - 11/22/2013 3:20:15 PM

+2 Boost

Agent009
I'm not sure why you have such an unhealthy obsession with the GM bailout? You reported yesterday that the Government took a $10B loss on this, and no one cared, and today you report that the Government took a $10B loss on this, and no one cares. When can you get back to real automotive news?

Agent009 - 11/22/2013 4:48:17 PM

0 Boost

Not sure if I am obsessed or the rest of the media is. The simple fact is that GM was written a fat check for mismanagement. There should have been criminal charges.

At least the banking industry paid off with interest, while Chrysler struck a deal, and GM just remained on welfare as long as possible while resenting the fact there were strings attached to the hand out.

I can't say if GM will ever be on my shopping list again after the embarrassment they have become.

MattDarringer - 11/23/2013 10:20:15 AM

+1 Boost

The point of the GM bailout is that despite the heavy handed reorganization, GM has been allowed to make stupid moves. "Buying" (in effect) in to Peugeot-Citroen should have been blocked by the US government. PSA is a money pit and they make 3rd rate cars, so of course GM buys in. Then there is money pit Opel that is sucking the American operation dry of money. GM Korea is going gangbusters, so why was GM not forced to make Opel and GM Korea the same thing? Why is Holden allowed to exist almost as an independent company?

I don't blame GM entirely for the outcome. The Obama Administration MUST shoulder part of the blame for giving taxpayer money to a corporation and not being iron fisted in insisting that GM make profitability it's #1 goal.

Ford fixed itself. GM could have as well.