Watchdog: Treasury to lose $9.7B on bailout of GM

LANSING, MI - MARCH 10: Workers build a GM crossover SUV as it goes through the assembly line at the General Motors Lansing Delta Township Assembly Plant on March 10, 2010 in Lansing, Michigan. The Delta plant has more than 3,000 workers on two shifts and is expected to add a third shift of 900-1,000 workers in April. The plant produces the Buick Enclave, Chevrolet Traverse, and GMC Acadia crossover SUVs. (Photo by Bill Pugliano/Getty Images) Bill Pugliano

DETROIT A watchdog says the U.S. government expects to lose $9.7 billion on its bailout of General Motors (GM).

The government spent $49.5 billion to save GM five years ago. The Special Inspector General for the Troubled Asset Relief Program says the government has recovered $34.5 billion. That leaves $15 billion.

The government got 61 percent of GM's stock in the bailout. It has sold all but 7 percent, or 101 million shares. Those would have to sell for $148 each to break even. GM stock was trading at $35.72 Tuesday.

The inspector general says in a report to Congress that the government is showing a $9.7 billion loss on its books.

The government says it bailed out GM and Chrysler to save 1 million jobs and prevent a deeper recession.

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