General Motors Bailout to Cost U.S.Billions

By: Associated Press
By: Associated Press
Watchdog group says taxpayers will lose nearly $10 billion on automaker rescue.

FILE - In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit. General Motors Corp. has agreed to take on responsibility for future product liability claims, according to documents filed in federal bankruptcy court in New York on Friday June 26, 2009. The new company will now assume responsibility for future claims involving vehicles made by the old company. (AP Photo/Carlos Osorio, File)

A watchdog says the U.S. government expects to lose $9.7 billion on its bailout of General Motors.

The government spent $49.5 billion to save GM five years ago. The Special Inspector General for the Troubled Asset Relief Program says the government has recovered $34.5 billion. That leaves $15 billion.

The government got 61 percent of GM's stock in the bailout. It has sold all but 7 percent, or 101 million shares. Those would have to sell for $148 each to break even. GM stock was trading at $35.72 Tuesday.

The inspector general says in a report to Congress that the government is showing a $9.7 billion loss on its books.

The government says it bailed out GM and Chrysler to save 1 million jobs and prevent a deeper recession.


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