LITTLE ROCK — U.S. assistance to General Motors Co. and other automakers is on track to cost “far less than anyone had first anticipated” as the Treasury Department recoups the funds it used to stabilize the industry, the acting head of the Troubled Asset Relief Program said Tuesday.
“General Motors’ successful initial public offering is another important milestone in our efforts to recover TARP funds on behalf of the American taxpayer,” said Tim Massad, the Treasury Department’s acting assistant secretary for financial stability, in a statement.
The department on Tuesday received $11.7 billion in proceeds from the Nov. 17 offering. If GM’s underwriters decide to exercise their option to buy additional shares, the Treasury Department would receive further proceeds of $1.8 billion, the department said.
The $700 billion Troubled Asset Relief Program was used to rescue a broad portion of the U.S. financial industry during the 2008 and 2009 financial crisis.
Of the $388 billion spent under the program, $252 billion has now been repaid, the Treasury Department said Tuesday.
Business, Pages 32 on 11/24/2010