U.S. Treasury: Auto bailout loss will be around $14 billion

President Barack Obama

Here is some ‘good’ news for all the taxpayers that were hesitant about their money going to save the domestic automakers. The Obama administration said today that the government expects to lose less than $16 million of its bailout to U.S. automakers and auto finance companies.

“While the government does not anticipate recovering all of the funds that it invested in the industry, the Treasury’s loss estimates have consistently improved – from more than 60 percent in 2009 to less than 20 percent today,” the White House National Economic Council said in a report today.

The U.S. Treasury Department said that it estimates of auto bailout losses as of March 31 is $13.9 billion. The Congressional Budget Office also estimates a $14 billion loss.

Of the total $80 billion invested in General Motors, Chrysler Group, Ally Financial Inc. and Chrysler Financial, $40 billion has been recovered.

– By: Omar Rana

Source: Detroit News