2013-11-01 12:04:38

U.S. Government will Spend $9.7 Billion on GM's Bailout

The U.S. government has publically reported a $9.7-billion loss on the bailout of GM.

The loss was announced on a quarterly report to Congress and nowadays the U.S. Treasury owns 101.3-million shares as of September 26, the most recent date with data available. The U.S. Treasury bailed out GM in 2009 at a cost of $49.5 billion and got in exchange $2.1 billion in preferred stock and 60.7-% equity stake.

Since that time, the Treasury has been selling GM stock at a price below what the Treasury needed it to be in order to break even, finally resulting in a loss. It has lowered its equity stake to 7.2 % and is going to sell its remaining shares by April 2014.