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Taxpayers Taking Bigger Hit on GM Bailout

Total rises to $11.2 billion after accounting error.

by on Apr.30, 2014

The government bailout of General Motors is going to cost taxpayers $11.2 billion: $826 million more than originally expected.

U.S. taxpayers are taking a bigger loss on the General Motors bailout package than $10.3 billion originally reported. Due to an accounting error, the loss is actually $11.2 billion, according to a report released today.

The Treasury Department reported an $826-million administrative claim had been written off on March 20. However, the claim, which has not been revealed, cannot be written off.

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The figure surfaced in a report by the Office of the Special Inspector General for the Troubled Asset Relief Program, which was charged with overseeing the federal government’s economic stimulus program. (more…)

U.S. Treasury Continues Sale of GM Stock in October

Government still tracking to lose nearly $10 billion.

by on Nov.13, 2013

The U.S. government now holds about a 4% stake in General Motors after selling off more stock in October.

The U.S. government’s steady sale of its remaining shares of General Motors stock continued last month, according to the Treasury Department, as it sold $1.2 billion of its holdings.

The government is still on track to lose about $9.7 billion on the shares, which it acquired in 2009 as part of the automaker’s bankruptcy restructuring. The final number won’t be known until all of the shares are sold, but the Detroit-based maker’s stock price would have to jump to more than $175 per share now for the government to break even.

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The Treasury has said it plans to divest the rest of its holdings by next spring and has been selling the stock in bits and pieces since this summer. (more…)