Government Will Lose $14 Billion from GM Bailout
Spin Doctors–in reverse. After touting the repayment of Chrysler’s 5.9 billion bail out loan from the Feds, the government’s National Economic Council released a report today saying the Federal Government will lose approximately 14 billion in taxpayer funded money in the GM bailout.
This is down from the original percentage the Feds figured they would lose in the Bailout. 80 billion was given to General Motors to keep the manufacturer from going under. The Obama Administration has been touting the repayment of several billion in loans by GM, but has issued no official comment on the 14 billion they will lose. Obama plans to visit a Chrysler plant soon to triumph the success of the bailout. This 14 billion, or 16 billion as reported by the Wall Street Journal, is approximately 20 percent of the total bailout. The Feds estimated it could have been as high as 60 percent. The government will lose money when it sells it’s shares of stock it owns in GM on the open market if the price is lower than what it was purchased for prior to the bailout.