Industry News: U.S. Treasury Reports A $9.7 Billion Loss On GM's Bailout

[William Maley]

William Maley

Staff Writer - CheersandGears.com

October 30, 2013

The U.S. Treasury's sell off of General Motors stock isn't faring so well. According to a new report from The Detroit News, the U.S. Treasury has reported a $9.7 billion loss on the $49.5 billion bailout of GM back in 2009. This figure comes from the quarterly report from the Special Inspector General of the Troubled Asset Relief Program to Congress.

The U.S. Treasury original stake in GM back in 2009 was around 60.8 percent. Since that time, the Treasury has been selling off shares in a effort to make back some of the funds used in the bailout.

The Detroit News says for the U.S. Treasury to break even, the share price would have to be around $147.95. That isn't going to happen since GM's current price stands at $36.06 at the end of yesterday's trading.

Source: The Detroit News

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[G. David Felt]

While this was not unexpected, I was hoping that they would have held onto their shares longer to at least break even.

Here is to hoping.

For those that think we should have not done this at all, the worst thing would have been to stand by and do nothing and have a far worse price tag on our country.

[Drew Dowdell]

We took a loss on the sales of the shares, but the gain of kept employment (and paid taxes by those employees) by the domestic auto industry is far greater than the stock sale loss.

[G. David Felt]

Wonder how the Gov Stock Loss plays with their IRS filling?

[A Horse With No Name]

We took a loss on the sales of the shares, but the gain of kept employment (and paid taxes by those employees) by the domestic auto industry is far greater than the stock sale loss.

Bingo!