Can Taxpayers Recoup GM Bailout Money?
Sep 22nd 2010 8:00PM
Updated Sep 22nd 2010 8:22PM
A government watchdog says the U.S. Treasury would have to sell its General Motors stock for $133.78 each to get back the nearly $50 billion it spent bailing out the Detroit automaker.
Special Inspector General for bailout funds Neil Barofsky revealed the figure in an Aug. 30 letter to Republican Sen. Charles Grassley of Iowa. The letter was obtained by The Associated Press on Wednesday.
He says the government gave GM $49.5 billion to stay in business. GM repaid $6.7 billion and the rest was converted to preferred shares and a 61% stake in the company. The government plans to start selling its GM shares in mid-November.
Barofsky told Grassley he would look into the steps taken to make sure taxpayers get their money back.