The U.S. Treasury’s bailout fund has lost about $9.7 billion on its rescue of General Motors Co. (GM) and would need to sell its remaining shares in the automaker for an average of $147.95 to break even, a report to Congress said.
The Special Inspector General for the Troubled Asset Relief Program in a report issued yesterday estimated the realized losses on all GM shares sold from November 2010 through Sept. 13, 2013, at $9.7 billion. At that point, the U.S. owned 101.3 million shares. If it sold those for yesterday’s closing price, the government would lose about $760 million more, bringing the total loss to about $10.5 billion.
Oct. 30 (Bloomberg) -- Dan Ammann, chief financial officer of General Motors Co., talks about the automaker's third-quarter profit, vehicle production and competition in Asia. Ammann speaks with Deirdre Bolton and Matt Miller on Bloomberg Television's "In the Loop." (Source: Bloomberg)
The U.S. investment in GM was the biggest piece of an industry bailout that became a centerpiece of President Barack Obama’s first term. The Treasury has said it will sell its shares by early 2014. GM Chief Executive Officer Dan Akerson has said the government may exit before this year is over.
“The auto rescue saved our economy more than a million jobs and led to the revitalization of our nation’s domestic auto industry,” Representative Sander Levin, a Michigan Democrat, said in a statement. “General Motors and Chrysler -- not to mention Ford -- are thriving, in no small part thanks to the commitment from the Obama administration.”
Credit to Bloomberg
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