Chrysler CEO: “U.S.Taxpayers Are Getting A Phenomenal Deal By Losing ONLY $1.3 Billion On Bailout”

Chrysler-CEO-Says-1.3-Billion-Taxpayer-Loss-On-Bailout-Is-Phenomenal-Deal

As the feds report that U.S. taxpayers have lost $1.3 billion on the Chrysler bailout, the company’s CEO says it is a phenomenal deal for the American people.

CNN reports that taxpayers are likely to have lost $1.3 billion as part of the Chrysler bailout.

U.S. Loses $1.3 Billion In Exiting Chrysler

NEW YORK (CNNMoney) — 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. It wrapped up the 2009 bailout that was part of the Troubled Asset Relief Program six years early.

“The fact that the company has done so well — that they were able to go out and raise private capital to repay us the loan so quickly, is really the big story,” said Tim Massad, Treasury assistant secretary for financial stability.

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. Fiat now owns a 53.5% stake in the company.

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 have been returned through principal repayments, interest and cancelled commitments, the Treasury said. The new Chrysler Grouppaid back $5.1 billion in loans in May.

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Source: CNN

If that isn’t bad enough, watch the CNN video report on the bailout. In this  short video clip the Chrysler CEO says that the “U.S. taxpayers are getting a Phenomenal deal by ONLY losing $1.3 billion”.

 

Categories: ECONOMY

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