The US Lost $US10.5 Billion On The GM Bailout

The U.S. lost $US10.5 billion on its 2009 bailout of General Motors,
AP reports.
The Treasury department said it had recovered $US39 billion on its $US49.5 billion financial package as it announced it had sold its last share. The $US10.5 billion figure comes in above a $US9.7 billion estimate from October. A recent report from the Center for Automotive Research showed the plan saved 1.2 million jobs.

George W. Bush kicked off the government’s rolling bailout of the automaker in December 2008. The company ultimately received a total of $US49.5 billion in federal loans, with Treasury taking a $US2.1 billion in preferred stock and a 60.8% equity stake in return. Since re-listing on the stock market in November 2010, GM shares have climbed more than 17%. The government also capitalised on the company’s IPO, as well as a stock buyback the open market.

Taxpayers also took a $US1.3 billion hit on the Chrysler bailout after that company exited bankruptcy in 2011.

Last week, Bloomberg’s Tim Higgins, Kelly Bit and Stephanie Ruhle reported that Kyle Bass’ Hayman Capital Management had purchased a large stake in the company, thought the exact size was not revealed. Recent sales have been strong, with Q3 revenues growing 13.7%, above consensus expectations.

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