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U.S. Treasury to lose $1.6B over Chrysler bailout

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U.S. Treasury to lose $1.6B over Chrysler bailout

05/18/2010, 7:38 PM BY ANDREW GANZ

The United States Treasury says that it will lose about $1.6 billion of the $4 billion it provided to Chrysler about a year ago in order to keep the Detroit automaker afloat.

Earlier this week, the Treasury Department confirmed that Chrysler repaid $1.9 billion and the agency says that it expects to receive another $500 million from the automaker, leaving a $1.6 billion deficit.

That loss is on top of the additional $1.9 billion poured into the portion of Chrysler that is now in bankruptcy – a figure that the Treasury has already said it doesn’t expect to see again.

Just how much the taxpayers will wind up paying to save Chrysler, General Motors and the two companies’ financial arms depends on how much the government receives after it sells its share in each automaker. The United States has about 60 percent of GM and roughly 10 percent of Chrysler.

GM anticipates a public stock offering later this year, while Chrysler says its IPO is at least a year out.

link:

http://www.leftlanenews.com/u-s-treasury-to-lose-1-6b-over-chrysler-bailout.html

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