U.S. taxpayers lost $9.3 billion on the government’s bailout of auto companies

Article by Christian A., on December 31, 2014

The United States Department of Treasury has finally sold its remaining stake in Ally Financial Inc., resulting to a $9.3-billion loss for US taxpayers from its bailout of the company, General Motors Co. and Chrysler Group. According to department data, the Treasury spent $79.7 billion for the bailout, but only managed to generate $70.4 billion from selling the government’s stakes in those companies.

The last of those stake sales occurred this month as the US government disposed of its remaining $1.28 billion stake in Ally. The three companies received huge rescue funds from the emergency government program as a way to avert their total collapse in 2008, which was feared could lead to a deeper economic crisis.

The bailout had Ally receive $17.2 billion from the program, resulting to a 74-percent stake for the Treasury. Following the stake sale, the government now owns none of Ally.

Treasury Secretary Jacob J. Lew remarked that the emergency government program was a crucial part of the Obama administration’s effort to halt the financial crisis and protect the economy from “slipping into a second Great Depression.”

The government’s Troubled Asset Relief Program in total spent around $426.6 billion to bail out a number of US companies like Citigroup Inc., Bank of America Corp. and American International Group Inc. The Treasury has received $441.7 billion in repayments and other income from the program.

Topics: united states

If you liked the article, share on:

Comments

Recommended

After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries