Wednesday, May 6, 2009

Chrysler's $7 billion TARP Loan Written Off

Taxpayers were sold on the bailout. Leaders said TARP was an investment, one that would be paid back with interest. Chrysler's $7 billion in taxpayer money won't be paid back at all. Uncle Sam wrote it off. Reuters reported:

The company understood, "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."

"While we do not expect a recovery of these funds, we are comfortable that in the totality of the arrangement, the Treasury and the American taxpayer are being fairly compensated," an Obama administration official told CNN Money.

Who else will welsh on their bailout debt? $7 billion in free money, sweet!