Economy
7:54 am
Wed October 30, 2013

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.