GM Bailout Loss Totals $9.7B, Report Says
The U.S. Treasury has lost $9.7 billion on the GM bailout plan, according to a quarterly report to Congress released on Thursday. During the auto crisis of 2009, the government took a 60.8-percent stake in the automaker. This number has since dropped to around 7 percent as the government has sold off 811 million of its original 912 million shares. The report, sent from the Special Inspector General overseeing the Troubled Asset Relief Program, said that the GM stock sales have all occurred far below the price needed for the government to recoup its money. GM's stock traded at $35.80 a share by Wednesday's close, up 1 percent. In order for the government to break even, however, it would need to sell its shares at an astronomical $147.95. The government has said that it plans to sell all of its shares in GM by April 2014 at the latest. The remainder of the government's stake is worth around $3.6 billion. If current pricing holds true, GM will end up losing around $10 billion when all is said and done. Although taxpayers will likely end up losing a lot of money on the nearly $50 billion GM bailout, the government has repeatedly said that its goal was not to make a profit from its investment in GM. The Center for Automotive Research estimates that the GM bailout saved about 1.5 million jobs. Sources: The Detroit News, Reuters
Kia brings back Blake Griffin for the new Optima campaign scheduled to run through the NBA season.