Auto Bailout Loss Jumps to $25B

New Treasury report registers a 15% rise in predicted losses
By Kate Seamons,  Newser Staff
Posted Aug 14, 2012 7:58 AM CDT
Auto Bailout Loss Jumps to $25B
General Motors CEO Rick Wagoner travels in a Chevrolet Malibu Hybrid, second car at center right, Wednesday, Dec. 3, 2008, from Detroit to Washington to testify in a Congressional hearing on the auto industry bailout.   (AP Photo/Gerald Herbert)

The auto bailout just hit America's wallet about 15% more than expected. In its monthly report to Congress, the Treasury Department tacked another $3.3 billion onto the expected auto bailout losses, bringing the estimate to $25.1 billion lost on the $85 billion rescue. And the Detroit News warns that the number could tick higher. That's because the report's estimate ran through May 31, and things have gotten slightly gloomier since then.

GM's stock price, at $22.20 a share at May's end, closed at $20.47 yesterday. By the News' calculations, that would mean another $850 million loss on the GM bailout. To recoup its entire bailout of GM, the government would need to sell its 500 million shares in the company for more than double that price: $53 a share. The bailout loss estimate has been a bit of a rollercoaster: Though the White House's initial projection was that losses would hit $44 billion, in May 2011 the Treasury had pegged expected losses at $13.9 billion. (More auto bailout stories.)

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