Report: Bailout Will Swing to $23-Billion Loss This Year

A new report says the government's financial bailout program will see a $23 billion loss in the year that ended Sept. 30, compared with a $37 billion gain on taxpayers' investment the year before.

The Congressional Budget Office made the prediction in its report issued Tuesday on the federal budget. The expected loss is mainly due to the drop in the stock prices of General Motors and insurer American International Group, in which the government still holds big stakes.

AIG shares fell from around $40 to about $25 over the past year; GM shares fell from around $35 to $24.

Amid the 2008 financial crisis, Congress authorized spending $700 billion on the bailout. About $413 billion was lent. So far, the government has recovered around $318 billion.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)