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Chrysler won't repay bailout money
CNN.com ^ | May 5, 2009 | By Chris Isidore

Posted on 05/05/2009 3:16:34 PM PDT by Oldeconomybuyer

An administration official confirms that a $4 billion bridge loan and $3.2 billion in bankruptcy financing won't be paid back by Chrysler following bankruptcy.

NEW YORK (CNNMoney.com) -- Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company's key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy.

An Obama administration official confirmed Tuesday that Chrysler won't be repaying the loans...

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections; US: Michigan
KEYWORDS: agenda; automakers; bailout; bailoutmoney; bailouts; bankruptcy; bho44; bhoeconomy; chrysler; corruption; democrats; economy; fubo; hopeychangey; michigan; obama; obamatruthfile; taxes; taxpayersbailout; taxpayersmoney; uaw; unions; youpayforthis


1 posted on 05/05/2009 3:16:34 PM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

...Ahhh, mugshots for wanted, extremely dangerous posters...


2 posted on 05/05/2009 3:18:28 PM PDT by gargoyle
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To: Oldeconomybuyer

Well that’s money well spent.

Just like the rest of the bailout money. We aint gonna see sh*t!


3 posted on 05/05/2009 3:19:24 PM PDT by cups
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To: Oldeconomybuyer

Why would anyone expect the UAW to pay back anything after they get the keys to the front office?

It seems that the only piracy isn’t on the high seas!


4 posted on 05/05/2009 3:21:20 PM PDT by the_Watchman
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To: the_Watchman

We should begin thinking about boycotting Chrysler and Government Motors and buy American Ford products. Zero’s little green fiat junk scooters along with Gov Motors elecs can sit in the parking lots. Enjoy your newly found unearned wealth, UAW!


5 posted on 05/05/2009 3:25:09 PM PDT by yorkie01
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To: Oldeconomybuyer
An Obama administration official confirmed Tuesday that Chrysler won't be repaying the loans

Cerebrus and Bain Capital secured their bondholders interest. Never should have offered the bridge loan to a privately held interest. The UAW is going to get Zilch. Hopey-Changey we CAN believe in for sure. Liquidate the assets and quit making buggy whips.

6 posted on 05/05/2009 3:35:21 PM PDT by AH_LiveRight
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To: Oldeconomybuyer
Chrysler LLC will not repay U.S. taxpayers

No sh*t Einstein! Hell I knew that BEFORE the bailouts...

7 posted on 05/05/2009 3:47:42 PM PDT by John123 (The US may be going down the drain, but everyone else will drown first...)
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To: cups
So we had our President tell us he was appropriating our money to keep Chrysler running AND that this would be a lone and promised wed be getting our money back.

After doing this he has taken control of the company. So it would be fairly reasonable to assume Obama is responsible for this decision that we will not be getting our money back.

So he basically lied to us all if you connect these events did he not?

Not to mention that we are now finding out that he intends to give 55% of Chrysler (which he obtained with our money) to the Labor Unions? He steals our money, buys a company, gives that company to a Labor Union, and now reneges on the promise that we would get that money back?

This makes Iran Contra look like a tempest in a teapot.

Folks - we are being stolen blind.

8 posted on 05/05/2009 3:52:07 PM PDT by R0CK3T
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To: Oldeconomybuyer
My Auto gnome tells me another gem buried in this document. I need to 2nd source it, but I trust this gnome.

THe Jeep Wrangler is up for sale. I was shocked. One of the few assets worth holding onto. I spoke with my attorney gnome who knows those affected by Fiat mergers. This gnome response was Fiat is a stripper, and they will strip it out and sell it.

My gut feel at this point is, Obama, the Tax Payer, and all the chrysler workers, and the US is going to get a royal screwing.

9 posted on 05/05/2009 3:52:27 PM PDT by taildragger (Palin / Mulally 2012)
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To: John123

amazing... so we all pay to protect these union jobs.. meanwhile so many are out of work, without this type of protection.. guess some people are just more “equal” than others.

sheesh...this just keeps getting worse and worse.. each day brings a new development, that is more incredulous than the last.


10 posted on 05/05/2009 3:54:59 PM PDT by Chuzzlewit
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To: Oldeconomybuyer
An administration official confirms that a $4 billion bridge loan and $3.2 billion in bankruptcy financing won't be paid back by Chrysler following bankruptcy.

Did Obama mention this during his press conference?

11 posted on 05/05/2009 3:57:59 PM PDT by Right_in_Virginia
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To: Right_in_Virginia

Not really. Obama’s loan was tied to the Fiat deal that fell apart when Chrysler filed bankruptcy. The only hope for taxpayers is if the Trustee finds the loan proceeds were used as preferential payments.


12 posted on 05/05/2009 4:06:19 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: R0CK3T

I’d read today about the D Senator from MI, and a bill that would let the government “give” $4,500 in rebates to people who traded in their low MPG vehicles and bought a Chrysler.


13 posted on 05/05/2009 4:07:03 PM PDT by ItsOurTimeNow ("Go now. Run along and tell your Xerxes that he faces Free Men here...not slaves.")
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To: Oldeconomybuyer
What a GREAT investment Tiny Timmy Taxcheat made. What was it, two months ago? And now it's all gone!

In a saner world these Obama folks would be begging for a trial.

ML/NJ

14 posted on 05/05/2009 4:15:50 PM PDT by ml/nj
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To: R0CK3T

good point


15 posted on 05/05/2009 4:22:38 PM PDT by cups
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To: Oldeconomybuyer

More reasons not to buy a Chrysler vehicle.


16 posted on 05/05/2009 4:31:38 PM PDT by Polarik (Forgeries are forever)
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To: yorkie01

It is difficult for me to believe anyone with an ounce of common sense will buy a Chrysler or GM product at this point—even brain dead pubbie moderates and demrats.

Of course, if your purpose is to buy one as cheap as you can get it and then drive it into the ground I guess that might work. On the other hand, I would expect union thug workers to begin sabotaging as many vehicles as possible once they realize they bought into a pig in a poke.

They contributed mightily to creating this mess, but they’ll no doubt blame everyone but themselves when Chrysler and GM go the way of the Dodo bird.

Anyone who believes The Marxist Onada and his crowd had any intention of ever recovering any tax payer money must believe in the Tooth Fairy. The two main purposes of this whole trumped up lending and financial crisis was income redistribution and business nationalization. Nothing more, nothing less.

Every time I think about those clowns in Congress managaging car companies I have to laugh. They have absolutely no credentials to do it; and they can’t even manage the Federal Budget.


17 posted on 05/05/2009 4:32:48 PM PDT by dools007
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To: yorkie01

Before I would promote Ford products I would want to verify that they didn’t “pay their dues” up front. Did they ask for bailout money?


18 posted on 05/05/2009 4:33:14 PM PDT by the_Watchman
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To: Oldeconomybuyer

Then it is time we stop calling what Chrysler got...”a loan”. A loan is something that is eventually repaid.


19 posted on 05/05/2009 4:36:44 PM PDT by voicereason
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To: Oldeconomybuyer

I thought you couldn’t discharge Federal debt in a bankruptcy - is that wrong?


20 posted on 05/05/2009 4:39:41 PM PDT by ProfoundBabe (RightyPics.com)
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To: Oldeconomybuyer

Lather, rinse, repeat.


21 posted on 05/05/2009 4:45:48 PM PDT by Mad_Tom_Rackham (What did Obama's Teleprompter know, and when did it know it...)
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To: R0CK3T

This could be a winning issue for Republicans during 2010.

We should definately push that any company that received bailout money will not be allowed to donate to Democrats (include the UAW).


22 posted on 05/05/2009 4:54:37 PM PDT by Tai_Chung
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To: Oldeconomybuyer

23 posted on 05/05/2009 5:18:14 PM PDT by Bryan24 (When in doubt, move to the right..........)
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To: Tai_Chung
Exactly.

Hammer the hypocrisy of vilifying those who received performance bonuses (threats by Union Thugs made to people outside their place of work - while 0bama bestows generous Bonuses to his faithful Unions members in the BILLIONS!

Basically 0bama confiscates our wealth so he could re-distribute it to HIS benefactors.

This is 0bama's plan - confuse the public thru a blur of transactions so he could take our money and re-distribute it, in the form of a big fat BONUS, to the Labor Unions.

24 posted on 05/05/2009 5:38:28 PM PDT by R0CK3T
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To: grellis
the first one isn't the same, the rest of them are basically duplicates of one another.
25 posted on 05/05/2009 6:48:22 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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To: Bryan24

Ooooh, I like that.


26 posted on 05/05/2009 7:01:45 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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To: All

take a look at this,

http://www.finemrespice.com/node/56

Confronting the head of a non-TARP fund holding Chrysler debt and unwilling to release it for any sum less than that to which it was legally entitled without compelling cause, this country’s “Car Czar” berated the manager of said fund with an outburst of prose substantially resembling this:

Who the f**k do you think you’re dealing with? We’ll have the IRS audit your fund. Every one of your employees. Your investors. Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything and nothing we find to destroy you with.


27 posted on 05/05/2009 8:23:35 PM PDT by OafOfOffice (Did You Ever Get The Feeling That The GOP Went Out For A Cigarette & Never Came Back?)
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To: Oldeconomybuyer

http://www.capitalgainsandgames.com/blog/andrew-samwick/860/course-youre-not-socialist-mr-rattner

Of Course You’re Not a Socialist, Mr. Rattner ...

My jaw would drop if I were on the receiving end of this, too:

At a meeting with executives from four of the nation’s largest banks earlier this month, the chief of the government’s auto task force, Steven Rattner, delivered a message that shocked some in the room.

To save Chrysler, he told them, the four banks and several other financial firms would have to surrender their claims to most of the $7 billion the automaker owed them. And what would the banks get in return for this sacrifice? Nothing.

But then again, my jaw isn’t attached to someone who would have done what these financial firms have done. I don’t care a whit about sparing these firms from the consequences of their decisions. I do care about the power grab by the executive and legislative branches of government that their dilapidated condition is enabling.

People complain that the word “socialist” is being inappropriately used to demonize attempts at restoring economic growth. That may be true in many cases, but how is the label not valid here? Government officials are making decisions about how to direct the means of production. And they are doing so without prior authorization or agreement and with the goal of sustaining employment in undproductive pursuits. What else would you call it? Some days it seems like the only things missing from this picture of collectivism are the the guns pointed at the citizens and the widespread starvation. But I suppose we are still at the beginning of this process.

Stop the bailouts. Start the bankruptcies.


28 posted on 05/05/2009 8:25:52 PM PDT by OafOfOffice (Did You Ever Get The Feeling That The GOP Went Out For A Cigarette & Never Came Back?)
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To: yorkie01

I will drive my 2001 Ford Focus into the ground, and then find another. Chrysler and GM couldn’t GIVE me a free car right now.


29 posted on 05/05/2009 8:53:29 PM PDT by Wisconsinlady
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To: Wisconsinlady

I’m in the market for a car. It will be a Ford.


30 posted on 05/05/2009 8:57:27 PM PDT by Winstons Julia
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To: Winstons Julia

We should boycott GM and Chrysler now.


31 posted on 05/05/2009 9:02:25 PM PDT by Wisconsinlady
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To: Oldeconomybuyer
Buy FORD.

Buy FORD.

Buy FORD.

Buy FORD.

Buy FORD.

Buy FORD.





F.O.- B.F.

You know what it means.



Let them starve.

Let all who follow Øbama fall into his cesspool of lies.

May they reap the desolation of their treason and wither in the desert of …



















PAYBACK

32 posted on 05/05/2009 9:04:14 PM PDT by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: Oldeconomybuyer




F.O.R.D.



F*** Øbama Ruin Democrats

33 posted on 05/05/2009 9:11:37 PM PDT by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: yorkie01
We should begin thinking about boycotting Chrysler and Government Motors and buy American Ford products.

Government guaranteed and low interest loans, tax rebates whether you pay taxes or not, if you buy G.M. or Chrysler will mean people will buy them. Hey, if you default on the loan, no big deal.

34 posted on 05/06/2009 4:40:43 AM PDT by Graybeard58 (Selah)
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To: Oldeconomybuyer

When tax-funded bailout billions are stolen by banking CEO’s and everyone else, it’s long gone! All these crooks should be behind bars.


35 posted on 05/06/2009 5:07:09 AM PDT by M. Espinola (Freedom is not 'free'.)
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To: R0CK3T

Wouldn’t have been a better option to offer huge tax rebates if you bought an American car? At least we would have gotten something for our money. What do we have now?
At leats send us a pine tree air freshener.


36 posted on 05/06/2009 7:11:00 AM PDT by Holicheese (He stopped the War on Terror and started a War on Patriotism!)
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To: Springman; sergeantdave; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; ...

If you would like to be added or dropped from the Michigan ping list, please freepmail me.


37 posted on 05/06/2009 8:42:27 AM PDT by grellis (I am Jill's overwhelming sense of disgust.)
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