U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday.
The government recently sold its remaining 6% stake in the company to Italian automaker Fiat, wrapping up the 2009 auto bailouts that were part of TARP.
Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust.
Originally, the government committed a total of $12.5 billion to the struggling automaker, Old Chrysler, and the company's newly formed Chrysler Group. Of those funds, $11.2 billion has been returned through principal repayments, interest and cancelled commitments, the Treasury said. The new Chrysler Group paid back $5.1 billion in loans in May.
Even though that means $1.3 billion will not be recovered from the bankrupt Old Chrysler, the Treasury called it a "major accomplishment." Heaven help us from any more Major Accomplishments. All this did was bribe the union bosses and didn't fix a damn thing.
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Shareholders lost everything and bondholders lost most of their investment that they would have recovered in bankruptcy court. The Unions and Fiat made out like bandits.
What's that term when government, unions and industry collude to run things? Oh yeah, Fascism. No wonder Fiat was so fired up to take over Chrysler.
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U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday.
