#AceFinanceNews – WASHINGTON – May 01 – US taxpayers lost $11.2 billion on the federal bailout of General Motors in 2009, according to a government report delivered to Congress on Wednesday.
The figure is an increase from the previous estimate of $10.5 billion.
GM received $49.5 billion to weather bankruptcy restructuring.
“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,” said Treasury Department spokesman Adam Hodge.
NEW YORK/DETROIT, June 1 (Xinhua) — In the largest industrial bankruptcy ever seen in U.S. history, General Motors Corp., the top U.S. automaker and once the world’s largest corporation, filed for bankruptcy protection on Monday.
The Detroit-based company, for decades a symbol of American manufacturing supremacy, corporate culture and even lifestyle, filed a Chapter 11 petition to the U.S. Bankruptcy Court for the Southern District of New York early Monday morning.
(InAutoNews) Reported – We are in June 1, 2009. At approximately 8:00 am EST General Motors fills for Chapter 11 reorganization in the Manhattan New York federal bankruptcy court.
The filing reported US$82.29 billion in assets and US$172.81 billion in debt. Is the fourth-largest filing in U.S. history after Lehman Brothers Holdings Inc., Washington Mutual and WorldCom Inc.
Shortly after, Obama administration is announcing that the Government will invest an additional $30.1 billion in General Motors(GM) to finance its bankruptcy reorganization – this after the U.S. government provided $20 billion in aid.
And GM is becoming the new GM – without Hummer, Saturn, Saab and many more operations…
So mission accomplished. Right? Wrong!
GM’s boat is once again taking water, writes Louis Woodhill at Forbes. http://tinyurl.com/csedmc4
The US still owns 26% of the company and would need about $53 a share to break even, a far cry from the current price of $20.
That adds up to a current “unrealized loss of $16.4 billion,” writes Woodhill.
The company went public again in November 2010, and the government sold its final shares of GM late last year.
Auto companies were given $79.7 billion by the Treasury Department amid financial collapse.
The companies have repaid $59.1 billion, AP reported.
AP – RT – AFP – XINHUA