Posted on 06/03/2011 3:39:49 AM PDT by EBH
Chrysler Group LLC, newly profitable and confident in its revamped products, will soon sever its ties with the U.S. government after most -- but not all -- of the bailout loans it got two years ago are repaid.
Italian automaker Fiat SpA agreed late Thursday to buy the U.S. Treasury's 6 percent interest in Chrysler for $500 million. Once the deal closes, the government will no longer hold a stake in the auto company.
The U.S. government will ultimately lose around $1.3 billion in the deal. The government authorized $12.5 billion in loans for Chrysler from the end of 2008 through Chrysler's bankruptcy filing in the summer of 2009. The Treasury Department said Thursday that Chrysler has repaid $11.2 billion -- including $2 billion in undrawn loans -- but it is unlikely to recover the rest.
"We didn't do this to maximize return. We did it to save jobs," Treasury Secretary Timothy Geithner said during a trip to Detroit in April.
(Excerpt) Read more at finance.yahoo.com ...
Uh? They didn't do this to maximize return.
0bama is going out there today to try and spin this deal as a success. Keep in mind they LOST 1.3 BILLION on the deal.
Newly profitable Chrysler should be paying off the debt. What fool sells something off, that is now making a profit, before recouping at least their investment.
Oh I can see what that answer is, that answer is Barack Hussein 0bama. Lookie me...I just lost another 1.3 billion dollars of your money and sold an American business to the Italians! Didn't I do good?
This doesn’t matter to me. I still won’t ever buy a Chrysler or a GM product again.
China will own Chrysler soon......
Well, heck... it doesn’t mention whether the purported ties between many remaining Chrysler dealerships and the Democrat party were severed as well.
Same here. Both companies are dead to me. Forever.
It should. Don’t you see the great campaign spin on this one coming?
Look, I saved XXXX millions of jobs at Chrysler by selling the company to Fiat for a loss.
We need to shut-down the spin machine on this.
How many jobs can 0bama claim to have saved with this one...
Mmmmm, mmmm, mmmm
President Barack Obama is drawing attention to the auto industry's rebound, visiting a Chrysler plant in politically important Ohio as he seeks to highlight a rare bright spot in the sluggish economic recovery.
So why did the government agree to sell $1.8 billion opf 6% debt for .5 billion. Geitner, the tax cheat, says we weren’t out to maximize return but why not break even. Why don’t we raise taxes to make up for the loss. Geitner, you are an idot.
Ready for the fantasy jobs report? What recipe will they use to cook the number today? It will probably be 8.999999%
Geithner: “It’s only taxpayer money. No need to to give it back”
Was that rhetorical, or do you have some actual data that a Chinese company is planning to move on Chrysler?
“We didn’t do this to maximize return. We did it to save jobs,”
Great way to run a business, Treasury Secretary. (Sigh.)
Incredible statement no?
And to think they took all and broke the law ...from the bondholders etc.
This is just incredible news this morning and they are spinning it as a success story!
Here is is the mantra for 0bama’s campaign...
“We saved jobs.”
Not created jobs, wealth, prosperity...”saved jobs.”
Democrats are seeking to turn the issue against would-be Republican presidential candidates who opposed the financial rescue of the Detroit automakers, especially former Governor Mitt Romney of Massachusetts. In an opinion column in November 2008, Romney advised: “Let Detroit go Bankrupt.’’
Romney is a native of Michigan; his father, George, once ran American Motors before serving as the state’s governor.
“This is to hit Romney where he lives,’’ said Garrison Nelson, a political scientist at the University of Vermont, commenting on the Democratic strategy.
http://www.boston.com/business/articles/2011/06/03/obama_seeks_edge_from_role_in_auto_bailout/
And the media is more than happy to play along with his charade.
...gonna have to pay the debt somehow......rhetorical, of course first we have to announce Chrysler is now solvent and has nothing to do with the government.
billions went to rat interests period, and thousands of local school boards and municipal managers got pay increases
Well the plant here in Fenton, Missouri shut its doors forever. Loss of thousands of jobs...and a severe blow to the economy especially within a 150 mile radius. Many of the employees were from small towns in the surrounding areas. Foreclosure rates run as high as 50%; not to mention the smaller businesses that have shuttered their windows due to their reliance on Chrysler.
Guess the marxist won’t be talking about that though huh?
An Illegal Bankruptcy what was the true costs?
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