On a day in which GM announced it was recalling at least 38,000 of its vehicles due to a crash risk, the Treasury Department said in a new report that it now expects to lose $25 billion on the auto bailout, which is $3.3 billion more than was previously forecast.
According to The Detroit News, the report may actually underestimate the losses and comes on the day in which GM’s stock price fell $.07 to $22.20 a share. At this price, the government, which spent $50 billion of taxpayer monies to bailout GM, would lose another $850 million on its “investment” in GM.
The report notes the government still has 500 million shares of GM and needs to sell those shares at $53 a share for the government to break even on the GM bailout. This seems unlikely, and officials said no sale will take place before the November election.
The government holds another 74 percent state in an auto finance company, which is part of another bailout portfolio in which the government invested $17.2 billion. They have only recovered $5.7 to date.
And the recalls are not going to help GM become more profitable....
It's only our money.
According to The Detroit News, the report may actually underestimate the losses and comes on the day in which GM’s stock price fell $.07 to $22.20 a share. At this price, the government, which spent $50 billion of taxpayer monies to bailout GM, would lose another $850 million on its “investment” in GM.
The report notes the government still has 500 million shares of GM and needs to sell those shares at $53 a share for the government to break even on the GM bailout. This seems unlikely, and officials said no sale will take place before the November election.
The government holds another 74 percent state in an auto finance company, which is part of another bailout portfolio in which the government invested $17.2 billion. They have only recovered $5.7 to date.
And the recalls are not going to help GM become more profitable....
It's only our money.
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