GM Bailout Cost U.S. Government $9.7 Billion

GM Bailout Cost U.S. Government $9.7 Billion
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The U.S. government has officially booked a $9.7-billion loss on the bailout of General Motors.

The loss was reported on a quarterly report to Congress and currently 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 received in exchange $2.1 billion in preferred stock and 60.8-percent equity stake.

US Government Sells Off 58.4-Million GM Shares This Year

Since then, the Treasury has been selling GM stock at a price below what the Treasury needed it to be in order to break even, ultimately resulting in a loss. It has decreased its equity stake to 7.3 percent and plans to sell its remaining shares by April 2014.

[Source: Reuters]

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