Treasury: U.S. lost $11.2 billion on GM bailoutby Drew Johnson
Taxpayers paid the price for GM\'s bailout.
The United States government announced this week that it lost $11.2 billion on its bailout of General Motors, or roughly $1 billion more than expected.
According to the report, released on Wednesday by the Treasury Department, taxpayers lost $11.2 billion on the United States' bailout of GM. The Treasury estimated the U.S. would lose about $10.3 billion on the deal when it sold its remaining shares in GM in December.
The U.S. government bailed GM out to the tune of $50 billion in 2009. Following the automaker's bankruptcy filing, the United States became a 61 percent owner of the company. The government slowly sold off its stake in GM in the subsequent years and completely divested its interest late last year.
Although a sizable loss, the Treasury notes that its goal in bailing out GM was to rescue the economy, not turn a profit.
"The goal of Treasury's investment in GM was never to make a profit, but to help save the American auto industry, and by any measure that effort was successful," Treasury Department spokesman Adam Hodge told Reuters.
It's estimated that the government's bailout of the auto sector - which also included a $12.5 billion loan to Chrysler - saved 1.5 million U.S. jobs.