GM Bailout Cost U.S. Government $9.7 Billion
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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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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