Back in 2009, General Motors was exiting its bankruptcy procedure as a clean “new” company, managing to save thousands of worldwide jobs.
While Ford narrowly averted the same procedure and Chrysler was partially bought by Fiat SpA (which now owns them entirely), General Motors was only saved through the intervention of the US federal government and the Canadian government. Of course, the bulk of the money came from the Obama administration, which decided to save the company’s employees (which, ultimately are taxpayers) with… taxpayer’s money.
Last year the Treasury Department sold the remainder of GM shares, but a new government report, made by the Office of the Special Inspector General for the Troubled Asset Relief Program, has now found out that losses incurred from the bailout were even deeper than estimated.
When it last sold the remainder of GM shares last year in December, the US Treasury Department considered it had a total loss – over the years – of $10.3 billion, but the new report says it’s actually bigger, at $11.2 billion.
According to a Treasury Department auditor, the difference comes from the federal government writing off on March 20 a $826-million “administrative claim” that was linked to the GM bailout.
Both the Bush and then Obama administrations gave General Motors in 2008 and 2009 around $50.2 billion in emergency aid, which proved essential for the company to survive the economic crisis.