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US Takes $9.7 Billion Loss on GM Bailout So Far

In 2009, the US government threw GM a $49.5 billion lifeline in exchange for a 60.8% stake in the company, and $2.1 billion in preferred stock. And last week, the Special Inspector General for TARP reported that as of September 13th, the US booked a loss of $9.7 billion on the GM bailout.

Back in November 2010, the government started whittling down its position in GM through a series of stock sales. And all of the sales have taken place at a share price below what would be needed to only break even.

The Treasury still owns 101.3 million shares of GM (which means a 7.3% stake in the company), and plans on selling all of it by April 2014. But just to break even, those shares would have to sell at an average $147.95. At the Friday close, shares stood at $37.39.

As a consolation, the Treasury said that “while the auto industry rescue may end up as a net cost to the government, the cost of a disorderly liquidation to the families and businesses across the country that rely on the auto industry would have been far higher”, and that the industry is profitable and has created 341,000 jobs since 2009.

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