Fed loses billions on GM
DETROIT, MI (AP)-- 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.