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U.S. Cuts Auto Bailout Loss Estimate by $4 Billion
The U.S. Dept. of the Treasury has slashed the forecast for its loss on the rescue of the auto industry in 2008-2009 to $20.3 billion from its previous estimate of $24.3 billion.
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The U.S. Dept. of the Treasury has slashed the forecast for its loss on the rescue of the auto industry in 2008-2009 to $20.3 billion from its previous estimate of $24.3 billion.
The government originally predicted a $44 billion loss on the $81.8 billion bailout.
The rebound in General Motors Co. stock is the main reason for the latest $4 billion improvement in the estimate. GM shares closed at $28.57 on Monday, up 44% from six months ago.
The Treasury Dept. sold 200 million shares for $5.5 billion in December. It plans to sell its remaining 300 GM million shares by March 2014.
The government exited its holdings in Chrysler Group last July with about a 90% recovery of its $12.5 billion of bailout financing.
The Treasury Dept.'s other remaining tie is to Ally Financial, the former GMAC Inc. Ally told Bloomberg News late last week that it aims to complete the full repayment of its $17.2 billion obligation to the U.S. by next year.
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