Thursday, July 21, 2011

Treasury Department: Chrysler Bailout Lost Taxpayers $1.3 Billion

I seem to recall a certain president talking about how Chrysler had repaid all its debt to the US.

Now that the deal with Fiat is complete and the numbers are in,the Treasury Department has a different story to tell.

The government recently sold its remaining 6% stake in the company to Italian automaker Fiat, who paid $560 million for the shares, as well as rights to shares held by the United Auto Workers retiree trust.

Originally, the Obama Administration gave Chrysler a total of $12.5 billion to the original Chrysler and the successor, the Chrysler Group. Of those funds,only $11.2 billion have been returned through principal repayments, interest and what th eTreasury Department refers to as 'cancelled commitments'...AKA debt forgiveness.

Based on the Treasury Department's own numbers, the American taxpayer got stuck for $1.3 billion. And it's probably more if one adds in those 'cancelled commitments'.But hey, the UAW was able to keep collecting those union dues and kicking back part of the swag to the Democrats,no?

In 2009,The auto bailout was originally projected by the Congressional Budget Office to lose $40 billion on the overall $80 billion auto bailout.

The latest projections are that the taxpayers will only lose a mere $14 billion. This is being referred to by the Obama Administration as a 'success'.

And you were wondering how our deficit got so big?

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