Dec 8, 2009, 1:37pm ET

Report: Obama administration to announce $30B bailout loss

The federal government's bailout of General Motors and Chrysler was viewed as an iffy prospect from the beginning, but the latest reports indicate the United States tax payers will undoubtedly come out on the wrong side of the project.







Although many government officials promised the money used to bailout GM and Chrysler would be repaid in full, the latest report from The Detroit News indicates that will not be the case. The Obama administration is expected to report to Congress later on Wednesday that it will lose about $30 billion of the $82 billion loaned to GM and Chrysler earlier this year.



It remains possible that the government's losses could narrow, but it would take an IPO far beyond what is currently expected for General Motors. The government has also pumped $13.5 billion into GMAC - the lending arm of both GM and Chrysler - but it remains to be seen if any of that money will be recouped.



Despite the bleak news, President Obama defended his decision to bailout GM and Chrysler earlier on Wednesday. "We also took steps to prevent the rapid dissolution of the American auto industry, which faced a crisis partly of its own making, to prevent the loss of hundreds of thousands of jobs during an already fragile time," Obama said in a speech. "These were not decisions that were popular or satisfying; these were decisions that were necessary."



The government has already forgiven almost $12 billion in aid given to Chrysler.



