Geithner says auto-related bailout losses to be less than expected

[Ed Barrow]

Source: Detroit News

Treasury Secretary Timothy Geithner said today that the government expects its losses from the $17.2 billion bailout of Ally Financial Inc. -- formerly GMAC -- to be "less" than it forecast last year.

The Office of Management and Budget has predicted that taxpayers will lose at least $6.3 billion in their bailout of Ally Financial. Geithner didn't put a new dollar figure on the projected loss at Ally, a major financial player in the auto industry.

Geithner said the auto industry's prospects have improved. The government bailed out Chrysler and General Motors last year as well.


"The auto industry has also undergone significant restructuring, and its prospects for repaying government investments have improved," Geithner said.


Read more: http://www.detnews.com/article/20100622/BIZ/6220390/1001/Geithner-says-auto-related-bailout-losses-to-be-less-than-expected