Taxpayers lost $6.44 billion on Chrysler bailout

Posted on June 4, 2011


By Conn Carroll…..President Obama told  a Chrysler plant in Toledo, Ohio, today: “Chrysler has repaid every  dime and  more of what it owes the American taxpayer from the investment  we made during  my watch.” That is just not true. Here is the math.

Chrysler  received the following loans from the federal government:
January 2009:  Chrysler receives $4 billion loan from TARP
January 2009: Chrysler financial  receives $1.5 billion from the Treasury Department
May 2009: Chrysler  receives a $1.9 billion debtor in possession loan from the Treasury  Department
June 2009: Chrysler receives a $6.6 billion loan from the  Treasury Department
Total loaned to Chrysler: $14 billion

Chrysler made the following payments to the federal government:
May  2010: Chrysler pays the Treasury Department $1.9 billion to settle their  January 2009 loan.
May  2011: Chrysler pays the Treasury Department $5.1 billion as partial  settlement for June 2009 loan.
June  2011: Chrysler pays the Treasury Department $560 million to settle the rest  of the June 2009 loan.
Total paid back by Chrysler: $7.56 billion

Total loss to taxpayers ($14 billion – $7.56 billion) = $6.44  billion.

Also not mentioned by Obama in Toledo today, the latest jobs report showing  unemployment up to 9.1% including a 3,400  job drop in the auto sector.