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 ...
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,
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.
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.
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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