The estimate comes from a quarterly report to Congress by a government watchdog and is up from a previous estimate of $10.5B.
The U.S. government ended up losing $10.5 billion on its bailout of General Motors, but still says the alternative would have been much worse.
“There’s no question that Treasury, the taxpayers, are going to lose money on the GM investment,” said Special Inspector General Christy Romero.
The U.S. government plans to sell another 30 million shares of General Motors stock in a public offering on Thursday as it speeds up efforts to divest itself from a stake in the auto giant that it got in a bailout four years ago.
The Treasury Department says it sold $621 million worth of GM common stock last month — likely about 22 million shares.
General Motors, trying to clear the stigma of being partly owned by the U.S. government, will spend $5.5 billion to buy back 200 million shares of its stock from the treasury.
As the campaign draws to a close it has become very apparent that Obama will return to the White House and that Harry Reid will lead a Democratic Senate.
Auto manufacturing is back in America – especially in Michigan, Ohio and Pennsylvania because President Obama made the politically risky decision to bailout the auto industry after bailing out the banks. It was a decision that worked. Obama was right, Romney was wrong. So Romney is now in full lying mode. He is trying to retroactively re-write the wrongs in his writings.
Yes, it’s great that all turned out well for the auto workers, but it is absolutely horrendous to know that the American taxpayers via President Obama’s actions could have been left standing for billions of dollars – and still might.
With the CBS Local Presidential Forum coming to a close Barack Obama and Mitt Romney take their chance to set the record straight, pointing out the false accusations their opponent has leveled and giving their response.