Little hope taxpayers break even on GM bailout
There's little hope that the US government will break even on its $49.5 billion bailout of General Motors.business Updated: Jul 24, 2013 11:17 IST
There's little hope that the US government will break even on its $49.5 billion bailout of General Motors.
A government watchdog says the Treasury would have to sell its GM stock for $95.51 per share to get its money back. The shares closed Tuesday at $36.61.
Treasury hopes to sell the 189 million GM shares it still owns by early next year.
The special inspector general for the Troubled Asset Relief Program says taxpayers are still $18.1 billion in the hole on the bailout, which GM needed to survive its bankruptcy restructuring in 2009.
Since leaving bankruptcy, GM has earned $17.2 billion. In exchange for the bailout, the government got GM stock. It has reduced its GM stake from 61 percent in 2009 to 14 percent as of last month.