Government Lost $9.26B on Auto Bailout

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 cars

Six years after the U.S. government rescued the auto industry from bankruptcy, the Department of Treasury is $9.26 billion short, according to accounting released Monday.

The Treasury said it recovered $70.43 of the $79.69 billion it gave General Motors Corp., Chrysler LLC as well as auto lending firms Ally Financial Inc. and Chrysler Financial.

The government closed the books on the program on Dec. 19, following the Treasury’s sale of its remaining 11.4 percent stake in the Detroit-based Ally, formally known as GMAC. The bailout program began in December 2008 under President George W. Bush with $25 billion in aid, followed by an additional $55 billion under President Obama. The government was repaid through dividends, interest payments, partial loan payments and stock sales. Read more at The Detroit News.

{Andy Heller-Matzav.com Newscenter}

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