Geithner Says Treasury Faces Losses From Autos, AIG

[bobbyw24]

Dec. 10 (Bloomberg) -- Treasury Secretary Timothy Geithner said today the government is unlikely to recoup its investments in insurer American International Group Inc. or the automakers General Motors Co. and Chrysler Group LLC.

Geithner also said he chose to extend the $700 billion Troubled Asset Relief Program to give the Obama administration more time to unwind its bank-rescue efforts. The economy still faces “significant headwinds,” and housing markets remain dependent on government support even as they are stabilizing, he said.

U.S. financial and economic conditions have improved, Geithner said in prepared testimony for the Congressional Oversight Panel. The Treasury now expects to make money on its banking investments, if not on its efforts to stabilize the automobile and insurance industries.

“There is a significant likelihood we will not be repaid from our investments in AIG, GM and Chrysler,” Geithner said.

The Government Accountability Office yesterday said that U.S. taxpayers will lose $30.4 billion from the auto-industry bailout, down from a prior estimate of $43.7 billion. The GAO report predicted a similar loss of $30.4 billion in AIG, down from a previous estimate of $31.5 billion.

http://www.bloomberg.com/apps/news?p...ZEq2sd7s&pos=3

[Chester Copperpot]

Geitner needs to pay the difference out of his own pocket.

Wheres the number for the secretary of the treasury...