Finance

Gov't report says US lost $11.2B on GM bailout

NEW YORK (AP) — A new report says taxpayers lost $11.2 billion on the government's bailout of General Motors.

The estimate comes from a quarterly report Wednesday to Congress by a government watchdog that oversees the bailout, and is up from a previous estimate of $10.5 billion. The Detroit automaker needed the $49.5 billion bailout to survive its bankruptcy restructuring in 2009. The company went public again in November 2010, and the government sold its last shares of GM in December. The report says the Treasury Department wrote off an $826 million administrative claim against General Motors Co. in March, ending its involvement with the company.

In an interview last year, Special Inspector General Christy Romero said there was "no question" the department and the taxpayers would lose money on GM. The agency said last year that the government lost $2.9 billion on the bailout of Chrysler, which cost $12.5 billion.

Treasury Department spokesman Adam Hodge said the agency was not looking to make money. "The goal of Treasury's investment in GM was never to make a profit, but to help save the American auto industry, and by any measure that effort was successful," he said.

Only one auto-related company is still partly under government control: auto lender Ally Financial Inc. Ally is the former financing business of GM, and earlier this month it went public again with an IPO that raised $2.38 billion. The Treasury Department owns a 17 percent stake in the company.

Auto companies received $79.7 billion in the bailout, and the Treasury Department has been repaid $59.1 billion. The department allocated $474.8 billion to the Troubled Asset Relief Program, or TARP, to bail out banks, insurers, auto companies and others during the financial crisis. It says it has recovered $438.4 billion.

Related Headlines

  • Benedict Willis

    Global tensions don't dent enthusiasm for stocks

    A war breaks out between Israel and Hamas. An airliner is shot out of the sky in Ukraine. A Portuguese bank's finances look shaky. And the U.S. stock market's response? After ... 

  • Dan Ryan, Vincent Surace

    Dow jumps 208 on job gains; Gold, bonds fall

    Investors think the U.S. economy is at a perfect temperature for stocks: not too hot, not too cold. The latest evidence came Friday in a jobs report that showed a pickup in ... 

  • US economy set for rebound after Q1 contraction

    The U.S. economy took a beating from an especially harsh winter during the January-March quarter, skidding into reverse for the first time in three years. But spring has ... 

  • Economists lower forecasts for US growth

    U.S. business economists have sharply cut their growth forecasts for the April-June quarter and 2014, though they remain optimistic that the economy will rebound from a dismal ... 

Find the best rates

Find your future job here