U.S. government’s projected loss in bailout falls to $19 billion

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According to the CBO, the projected government loss on its $80 billion auto industry bailout, has been lowered to $19 billion or 24%. That number is substantially lower than the March estimate of $34 billion, in large part due to the GM IPO last month which returned $14 billion to the government.

“The auto companies have repaid or settled much of their outstanding debt with the Treasury and have continued to demonstrate some measure of financial stability,” the CBO said.

This is certainly good news for the Obama administration, but didn’t come soon enough for the number of lawmakers who were unseated in November because of their support for TARP. TARP was initialized by President Bush in November of 2008, and expanded by the Obama administration.

– By: Stephen Calogera

Source: Automotive News (Subscription Required)