Audit: Taxpayers lose $61B on AIG, auto bailouts

By DANIEL WAGNER, AP Business Writer
Wed Dec 9, 6:19 pm ET


WASHINGTON – The Treasury Department is acknowledging for the first time that it lost $61 billion on two key programs designed to stabilize the economy after the largest financial crisis in decades.

The government is losing more than $30 billion on lifelines extended to insurance giant American International Group Inc., according to Treasury data released Wednesday in an audit by the Government Accountability Office. It also is losing more than $30 billion on rescues of struggling automakers Chrysler and General Motors.

Treasury says the losses are offset in part by profits earned from bank bailouts. It says the bank bailouts will net taxpayers $19.5 billion.

Over all, the bailouts are projected to cost taxpayers $41.5 billion.

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Remember that this capital loss is fully deductible when you file your 2009 tax return next April.