US Lost $9.7 Billion in GM Bailout So Far
According to report presented to Congress
The U.S. Treasury's bailout fund has lost about $9.7 billion on its rescue of General Motors Co. (GM) and would need to sell its remaining shares in the automaker for an average of $147.95 to break even, a report to Congress said.
The Special Inspector General for the Troubled Asset Relief Program in a report issued today estimated the realized losses on all GM shares sold from November 2010 through Sept. 13, 2013 at $9.7 billion. At that point, the U.S. owned 101.3 million shares. If it sold those for yesterday's closing price of $35.80 a share, the government would lose almost $800 million more, bringing the total loss to about $10.5 billion.
The U.S. investment in GM was the biggest piece of an industry bailout that became a centerpiece of President Barack Obama's first term. The Treasury has said it will sell its shares by early 2014. GM Chief Executive Officer Dan Akerson has said the government may exit before the year is over.
