GM bailout cost taxpayers $11.2 billion

NEW YORK — A new report says taxpayers lost $11.2 billion on the government’s bailout of General Motors.

The estimate comes from a quarterly report to Congress by a government watchdog that oversees the bailout, and is up from a previous estimate of $10.5 billion.

The Detroit automaker needed the $49.5 billion bailout to survive its bankruptcy restructuring in 2009. The company went public again in November 2010, and the government sold its last shares of GM in December. The report says the Treasury Department wrote off an $826 million administrative claim against General Motors Co. in March, ending its involvement with the company.

In an interview last year, Special Inspector General Christy Romero said there was “no question” the department and the taxpayers would lose money on GM.

In July the agency said the government lost $2.9 billion on the bailout of Chrysler, which cost $12.5 billion.

Only one auto company is still partly under government control: auto lender Ally Financial Inc. Ally is the former financing business of GM, and earlier this month it went public again with an IPO that raised $2.38 billion. The Treasury Department owns a 17 percent stake in the company.

The Treasury Department allocated $474.8 billion to the Troubled Asset Relief Program, or TARP, to bail out banks, insurers, auto companies and others during the financial crisis. Auto companies received $79.7 billion, and the department has received $59.1 billion in repayments.

More in Herald Business Journal

Snohomish County’s campaign to land the 797 takes off

Executive Dave Somers announced the formation of a task force to urge Boeing to build the plane here.

A decade after the recession, pain and fear linger

No matter how good things are now, it’s impossible to forget how the collapse affected people.

Panel: Motorcycle industry in deep trouble and needs help

They have failed to increase sales by making new riders out of women, minorities and millennials.

Costco rises as results display big-box retailer’s resiliency

Their model has worked in the face of heightened competition from online, brick-and-mortar peers.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Tax reform needs the public’s input on spending priorities

The GOP tax plan is a good idea, but the next step should give us a voice on how taxes are spent.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Under cloud of ethics probes, Airbus CEO Enders to step down

He leaves in 2019 after 14 years. Meanwhile, aircraft division CEO Fabrice Bregier leaves in February.

$4.99 sandwich promotion irks some Subway business owners

Management insists that “most franchisees support the promotion.”

Most Read