Auto Bailout Drops to $20.3 Billion
On Monday, the Treasury Department announced the overall cost of the 2008 financial rescue effort was reduced from $59.68 billion to $55.48 billion. This means that around 93 percent of the funds from the $700 billion Troubled Asset Relief Program (TARP) have been recovered. Sales of shares of remaining General Motors stocks helped in the TARP's downward revision of costs. The Treasury claims the auto industry bailout cost was reduced 16 percent from $24.3 billion to $20.3 billion. In 2009, the initial forecast said the Treasury would lose $44 billion on its GM and Chrysler bailout, but by the end of that year, the forecast fell to $30 billion and $14.3 in 2011. By December 2012, the Treasury sold 200 million GM shares for $5.5 billion, which reduced its holdings in the company to 19 percent. In order for the Treasury to break even, it needs to average $70 for the remaining shares, as the sale price for the 200 million sold were below the government's breakeven price. By March 2014, the Treasury hopes to have rid itself of its remaining GM shares, selling them to the open market. Source: Automotive News
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