Uncle Sam Will Lose Money on GM Bailout

Current stock prices show $11B loss
By Arden Dier,  Newser Staff
Posted Jul 25, 2013 7:54 AM CDT
Uncle Sam Will Lose Money on GM Bailout
In this April 25, 2012 file photo, Chevrolet Sonics move down the line at the General Motors Orion Assembly plant in Orion Township, Mich.   (AP Photo/Duane Burleson, File)

Hoping Uncle Sam will break even on the General Motors bailout? You might just have to keep on hoping. GM stock needs to sell at $95.51 per share for that to happen and that's three times the current price—even after a 25% climb this year—NBC News reports. "There’s no question that Treasury, the taxpayers, are going to lose money on the GM investment," a special inspector tells the AP, as industry analysts warn there's no sign that GM stock could even come close to the point of paying back the federal coffers.

Washington began selling off GM stock—it got 61% of the company in the $50 billion bailout—in 2010 for around $33 a share. Though last month the government was down to 189 million shares, or 14%, the goal is to be out of the car business by April 2014. And while the rising stock prices may reduce the damage, current prices would hand the White House just $6.9 million, with a loss of around $11.2 billion. That's no small number when compared with the Chrysler bailout, which cost taxpayers $2.9 billion, the AP notes. (Read more General Motors stories.)

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