Wednesday, November 16, 2011

Government Bailout Losses Associated with GM Greater than Estimated

The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline.
In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.
The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.
The big increase is a reflection of the sharp decline in the value of GM's share price. Needless to say, this is very disappointing news and rightly or wrongly will be very harmful to the President's positioning on the economy.$23.6B


Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More

Powered by Blogger