Taxpayers Can Kiss Auto Bailout Funds Goodbye: Report

"Highly unlikely" GM and Chrysler will ever repay billions

Wednesday, Sep 9, 2009  |  Updated 2:15 PM EDT
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Taxpayers Can Kiss Auto Bailout Funds Goodbye: Report

GM may never pay back billions in bailout funds from taxpayers, according to a Congressional report.

Taxpayers shouldn't hold their breath waiting to get back the billions the feds sank into bailouts of GM and Chrysler, according to a new report from Congress.

Half of the $10.5 billion given to Chrysler is "highly unlikely" to be repaid and the $50 billion GM won't be recouped unless the company's stock soars to unprecedented heights.

"Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount," according to the report. Still, "Preserving portions of Chrysler and General Motors might have resulted in savings for the government in other ways," the report said.

In all, the government spent $74 billion bailing out the auto industry, and taxpayers now own 61% of GM and 10% of Chrysler. The companies are now privately held, but GM plans to issue stock and go public next year.GM responded to the report with a pledge to repay the government.

Get more: MSNBC, The Associated Press
 

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