The U.S. Government took a bigger loss than what was initially reported on the General Motors bailout, a recently released government report from the Special Inspector General for the Troubled Asset Relief Program has revealed.
When the treasury sold its final shares of GM stock on Dec. 9, the estimated loss for taxpayers was estimated to be at $10.3 billion. That figured jumped to $11.2 billion after a Treasury Department auditor said the government had written off an $826-million “administrative claim” which was tied to the GM bailout.
The U.S. Government at one point owned 60.8 percent of GM stock and distributed $50.2 billion in emergency aid to GM in late 2008 and early 2009 to help the company out of bankruptcy. Before it sold its remaining GM stock in December, the Treasury predicted a total loss of $9.7 billion.
“The goal of Treasury’s investment in GM was never to make a profit, but to help save the American auto industry, and by any measure that effort was successful,” Treasury spokesman Adam Hodge told the Detroit Free Press.