Feds Officially End Auto Bailout

December 19, 2014

The federal government today officially ended its financial bailout of the US auto industry. Almost exactly half-a-dozen years ago, during the final weeks of the George W. Bush Administration, the government agreed to rescue General Motors, Chrysler and Ally Financial Incorporated. The financial bailout expanded after Bush left office and became President Obama’s signature economic success story, with Treasury officials saying the move preserved more than a million jobs and prevented a second Great Depression. Administration officials often repeated the catchphrase ”Osama bin Laden is dead and General Motors is alive.” The government had a financial stake in the automakers for years afterwards. But now the US Treasury is selling its last remaining 11-and-a-half percent stake in Ally Financial, though the company remains under investigation for allegedly making false representations about its former mortgage unit Residential Capital. The government says taxpayers will receive more from Ally than was loaned to the firm.