Skip to comments.Chrysler won't repay bailout money
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 ...
...Ahhh, mugshots for wanted, extremely dangerous posters...
Well that’s money well spent.
Just like the rest of the bailout money. We aint gonna see sh*t!
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!
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!
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.
No sh*t Einstein! Hell I knew that BEFORE the bailouts...
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.
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.
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.
Did Obama mention this during his press conference?
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.
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.
In a saner world these Obama folks would be begging for a trial.
More reasons not to buy a Chrysler vehicle.
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.
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?
Then it is time we stop calling what Chrysler got...”a loan”. A loan is something that is eventually repaid.
I thought you couldn’t discharge Federal debt in a bankruptcy - is that wrong?
Lather, rinse, repeat.
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).
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.
Ooooh, I like that.
take a look at this,
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.
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.
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.
I’m in the market for a car. It will be a Ford.
We should boycott GM and Chrysler now.
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.
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.
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.
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