Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“Americans are so enamoured of equality they would rather be equal in slavery than unequal in freedom.”     Alexis de Tocqueville

May 6, 2009

Chrysler files for protection against taxpayers

by Jason Pye

Chrysler will not pay the $7+ billion it owes to taxpayers:

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, though a portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.

Are you the least bit surprised by this? And as if this weren’t bad enough, Chrysler will get more taxpayer money:

The Obama administration official said that other money being made available to Chrysler, such as the $4.7 billion that will go to the company as it exits bankruptcy, will be a loan that the government expects to be paid back. In addition, that loan will be secured by company assets, unlike the previous loans to Chrysler.

According to the filing, the company’s financial advisor also foresees the need for an additional $1.5 billion loan from the Treasury Department by June 30, 2010.

And I’m sure they’re going to pay it back. How does the saying go? “Fool me once, shame on you; Fool me twice, shame on me.”


Permalink || Comments (2) || Categories: Economics
TrackBack URI: http://www.thelibertypapers.org/2009/05/06/chrysler-files-for-protection-against-taxpayers/trackback/
Read more posts from
• • •

2 Comments

  1. It’s so nice when corporations aren’t held accountable for their own mistakes.

    Comment by Kathryn Rebecca — May 7, 2009 @ 7:57 am
  2. Unless it’s Bush saying it, then it goes; “There’s an old saying in Tennessee — I know it’s in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can’t get fooled again.”

    http://politicalhumor.about.com/od/bushvideos/v/bushfoolme.htm

    Comment by Aimee — May 7, 2009 @ 9:39 am

Comments RSS

Subscribe without commenting

Sorry, the comment form is closed at this time.

Powered by: WordPress • Template by: Eric • Banner #1, #3, #4 by Stephen Macklin • Banner #2 by Mark RaynerXML