Fed Closes The Book On Bailout With Over $9 Billion In Losses - If They Were Your Money Manager Would You Have Fired Them Long Ago?

The U.S. government lost $9.26 billion on the auto industry rescue, according to the final accounting released late Monday.

In its report, the U.S. Treasury Department said it recovered $70.43 billion of the $79.69 billion it gave to General Motors Corp., Chrysler LLC and auto lending arms Ally Financial Inc. and Chrysler Financial. The government was repaid through a combination of stock sales, partial loan repayments, dividends and interest payments.

The books are closed on the program because the Treasury, on Dec. 19, sold its final 11.4 percent stake in Ally, the Detroit-based auto lender and bank-holding company formerly known as GMAC. The bailouts began in December 2008 under President George W. Bush with $25 billion in aid to GM, Chrysler and their lending arms. President Barack Obama added about $55 billion to the total.

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TheSteve - 12/31/2014 9:33:48 AM

+1 Boost

For a government that can't even balance the budget*, I don't have any confidence in their ability to balance this transaction and give us a meaningful and true number.

*Every year, the Feds spend more than they earn. This annual revenue shortfall is called "the annual deficit." It's the amount of money the government has to borrow that year, just to cover excessive spending. That borrowed amount is added to "the national debt," which is the total amount of money the nation is in the hole. Every year, that hole keeps getting deeper and deeper. At the end of 2014, it's about $18 Trillion dollars, or about $57,100 for every single man, woman, and child in the US. Count how many people are living in your home, multiply by $57,100, and you have your share of the national debt. Part of your income taxes are used to pay interest only on that debt, and it grows every year. Starting to see the picture?

chewy - 12/31/2014 2:34:03 PM

+1 Boost

There is some definite short and long term economic benefit for the entire country to having Chrysler and GM still around along with suppliers and all related parties.

TomM - 1/1/2015 7:18:19 AM

0 Boost

Add in the TAXES they collected from the people still employed at GM and Chrysler - that they would NOT have gotten if both went belly up - and the taxes from their suppliers who also would have gone belly up - and the deal looks a lot better.

But this accounting ignores that the Government actually made money in the overall program when you include the banks in the equation too.