Treasury says taxpayers' GM bailout loss now $9.7B
The latest quarterly report from the Treasury Department says it has booked a $9.7 billion loss the $49.5 billion bailout of General Motors.
The report to Congress from Treasury's special inspector general overseeing TARP, the Troubled Asset Relief Program that was the bailout fund for troubled financial and auto companies.
Taxpayers originally held 60.8% of GM in exchange for the bailout loans. Treasury has been selling down that stake and says in the report:
'Through a series of stock sales, Treasury has divested its preferred stock and most of its common stock, reducing its stake to 7.3%. Because the common stock sales have all taken place below Treasury's break-even price, Treasury has so far booked a loss of $9.7 billion on the sales.
The 7.3% equates to about 101 million shares of GM common stock, and to break even it now would have to sell those shares for an average of about $150. GM closed Monday at $35.80 making the remaining taxpayer stake worth about $3.6 billion.
The Treasury is conducting a new round of selling and has said it will divest all the shares by the end of the first quarter.
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