Friday, November 18, 2011

Estimated Losses From Auto Bailout Raised 65 Percent

From "Taxpayers Get Bigger Bill From GM, Chrysler Bailout" on
The Treasury Department issued a new estimate last week, indicating losses on the bailout will be $23.6 billion, more than 65% higher than the previous estimate of $14.3 billion. Including payments made to auto industry suppliers, the total cost of the General Motors/Chrysler bailout is roughly $85 billion.
GM's worth continues to fall. On Jan. 7, GM stock closed at $38.98 a share. By October, it had fallen below $20. It closed Friday below $22.

For taxpayers to break even on the GM portion of the bailout — about $50 billion of the $85 billion — General Motors stock [onwed by the US} needed to be sold at somewhere between $45 and $55 a share when the "new" GM went public in November 2010. But that price has never been reached. In fact, the stock has never found the $40 mark.

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