Author Topic: U.S. boosts estimate of auto bailout losses to $23.6 Billion  (Read 312 times)

0 Members and 1 Guest are viewing this topic.

Offline AlanS

  • Conservative Superhero
  • *****
  • Posts: 7171
  • Proud Infidel
U.S. boosts estimate of auto bailout losses to $23.6 Billion
« on: November 16, 2011, 06:18:16 PM »

This will brighten your day.

Quote
David Shepardson/ Detroit News Washington Bureau
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.

The current estimate of losses is based on GM's Sept. 30 closing price of $20.18, down one-third over the previous quarterly price.

GM's stock closed Monday at $22.99, up 2 percent. The government won't reassess the estimate of the costs until Dec. 30.

The government has recovered $23.2 billion of its $49.5 billion GM bailout, and cut its stake in the company from 61 percent to 26.5 percent. But it has been forced to put on hold the sale of its remaining 500 million shares of stock.

The new estimate also hikes the overall cost of the $700 billion Troubled Asset Relief Program costs to taxpayers. TARP is the emergency program approved by Congress in late 2008 at the height of the financial crisis. 
In total, the government used $425 billion to bailout banks, insurance companies and automakers, and provided $45 billion in housing program assistance.

The government now expects to lose $57.33 billion, including the full cost of the housing program, up from $36.7 billion. The new estimate means the government doesn't believe it will make an overall profit on its bailouts.
"Malo periculosam, libertatem quam quietam servitutem."

Thomas Jefferson

Offline Libertas

  • Conservative Superhero
  • *****
  • Posts: 42788
  • Alea iacta est! Libertatem aut mori!
Re: U.S. boosts estimate of auto bailout losses to $23.6 Billion
« Reply #1 on: November 17, 2011, 07:12:24 AM »
Another "I freaking told you so!" we can scream loudly at the nearest asshat that voted to authorize this BS!  (Can I wrap my fingers around their throat as I scream at them?  I think it would be therapeutic and justified!)

There should be immediate vote on a bill to repeal TARP and return any unused funds to the Treasury.  It also should include a provision that goes after assets of these two worthless outfits as we let nature takes it course...something which should have happened from the get-go!  Too Big To Fail has FAILED UTTERLY!

CUT THEM OFF!!!

I want another law passed banning all bailout bills!!!

 ::cussing::
Irrumabo!  GOP? - Nope. No more. They made their bed, now let them die in it.*
* © Libertas (H/T Glock32)