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Taxpayer Loses $1.6B On Chrysler Loan

From a seemingly surprised Associated Press:

Treasury takes $1.6 billion loss on Chrysler loan

By Martin Crutsinger, AP Economics Writer Mon May 17, 2010

WASHINGTON – The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009. Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.

Mind you, Chrysler and General Motors were added to the TARP bailout at the insistence of Mr. Obama and the Democrats.

Which is why we never hear about how they are costing the taxpayers billions.  Instead, we constantly hear about the evil banks, who paid back their loans ahead of time – and with interest.

Treasury said Monday that Chrysler repaid $1.9 billion of a $4 billion loan, which was extended before the company filed for Chapter 11. The government hopes to get another $500 million from the company that emerged from bankruptcy, Chrysler Group LLC.

It probably goes without saying that Chrysler is probably paying back these loans with money from other government loans. Just like General Motors did.

Treasury officials said that the government had no plans to boost its stake in the new Chrysler to cover those losses. It also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to the company that went through bankruptcy proceedings. It indicated slim hopes of recouping much if anything from that separate $1.9 billion loan.

Hmm. So Chrysler just ‘paid back’ $1.9 billion, and all of a sudden we are now hearing about another separate $1.9 million loan? What a coincidence.

The original $4 billion loan was made in January 2009, when the Bush administration was scrambling to rescue Chrysler, GM and their auto financing arms.

No, as we noted at the time, the original $4 billion dollar loan was made after Mr. Obama and the Democrats demanded it. But leave it to the AP to rewrite history to protect their masters.

The Congressional Budget Office estimated in March that the government’s $85 billion bailout of the automakers would cost taxpayers $34 billion.

Much of it will depend on how much the government recovers from its eventual sale of nearly 61 percent of GM and about 10 percent of Chrysler.

GM has said it could conduct a public stock offering later this year. Chrysler officials have said a public stock offering is not likely before 2011.

Who would be foolish enough to buy stock in GM or Chrysler after the way they screwed over their stockholders with their bankruptcy deal?

By the way, here is how this news is being reported by other media outlets:

Chrysler repays $1.9b to settle $4b gov’t loan

Hamilton Spectator 

AP The US Treasury Department said yesterday it had received $1.9 billion US from Chrysler to settle a $4-billion loan. The department said that while the …

US Treasury Says Chrysler Holding Repaid $1.9 Billion Loan

BusinessWeek – John Hughes 

May 17 (Bloomberg) — The US Treasury Department said it received a $1.9 billion loan repayment from Chrysler Holding, the parent company of …

Chrysler repays half of loan

Straits Times 

A worker polishes the Chrysler sign during the press days at the North American International Auto Show at Cobo Hall in Detroit, Michigan. …

‘Old’ Chrysler Repays US Loan

Wall Street Journal – Jeff Bater 

WASHINGTON—The US Treasury Department said Monday it had received $1.9 billion to settle a loan made last year as Chrysler hit financial …

US Recovers $1.9 Billion in Chrysler Loan Money

ABC News – John Crawley, Bernard Orr 

WASHINGTON (Reuters) – The US government has recovered about half of the initial $4 billion in bailout money that was extended to Chrysler Group under the …

It’s the General Motors ‘payback’ story all over again.

This article was posted by Steve on Tuesday, May 18th, 2010. Comments are currently closed.

5 Responses to “Taxpayer Loses $1.6B On Chrysler Loan”

  1. conant says:

    This one is a no brainer. Our National Socialists and their Dear Leader are following in the footsteps of the German National Socialists and their Fuhrer after they took over in 1933. First they attack and demonize until they seize control of their current target. Ask the Kupps about that. The US automakers are now gov’t controlled which is why you hear nothing about their recalls and all about Toyota. You will hear about how bad the bankers are until the govt controls them and the bad apples(Read jews) are purged and sent off to camps to be reeducated. This bunch wont stop until they either suceed or are removed by force if necessary

  2. proreason says:

    The shells are moving too fast to keep up with this one.

    But hey, what’s another 1.9 or 2 times 1.9 or 4 billion to the patriotic taxpayers of Obamyland.

    Why, just his advice on diet, basketball, xbox’es or immigration is worth 10 time that paltry sum.

  3. Right of the People says:

    Anybody for a game of Three Card Monte?

  4. GL0120 says:

    And to think they threw Bernie Madoff in jail for less than this!

  5. golfmann says:

    As to the question of who will buy these stocks…

    Short answer:

    Government Pension plans, of course, and probably with borrowed Fed money at that.

    See? All fixed!

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