“Victory Lap” On Chrysler Loans Distorts The Facts “Democrats Took A Victory Lap Tuesday To Celebrate Chrysler's Repaying Of Its Bailout …” (Michael O'Brien, “Dems Take Victory Lap, Jab Republicans, On Positive Chrysler News,” The Hill’s Blog Briefing Room, 5/24/11)
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CHRYSLER STILL OWES TAXPAYERS ANOTHER $2 BILLION FOR ITS RESCUE PACKAGE NBC Nightly News’ Brian Williams: Chrysler’s Claim Of Paying Back Its Loans Is “Misleading” Because They Had To Borrow More Money To Do So. “Chrysler announced today that it had paid back the bailout loans from both the U.S. and Canadian governments. We’re talking about $7.6 Billion in all, but this is a little misleading. The government loans were paid back by borrowing money from banks and selling bonds.” (NBC’s, “Nightly News,” 5/24/11)
Treasury Department: “As Previously Stated, However, Treasury Is Unlikely To Fully Recover Its Remaining Outstanding Investment Of $1.9 Billion In Chrysler.” (Press Release, “Chrysler Repays Outstanding TARP Loans,” Treasury Department, 5/24/11)
Chrysler Still Owes Taxpayers $2 Billion. “The company still owes the U.S. government $2 billion. The government could get some of that back by selling its 8.6 percent stake in Chrysler.” (Tom Krisher, “Chrysler To Repay Government Loans Tuesday,” The Associated Press, 5/23/11)
• “Repayment Of The Loans Will Still Leave U.S. Taxpayers About $2 Billion Short, In Shares That Are Still Held By The U.S. Government.” (Aaron Smith, “Chrysler To Pay Off $7.5 Billion In Debt,” CNN Money, 5/24/11)
“The Government Will Be Down $2 Billion On Its Bailout, But Still Hold A 6.6 Percent Stake In Chrysler.” “To date, the government has recovered $2.6 billion in interest and payments connected to the sale of Chrysler Financial. At current rates, the government will be down $2 billion on its bailout, but still hold a 6.6 percent stake in Chrysler.” (David Shepardson, "White House Officials Here Tuesday For Chrysler's $5.9B Repayment," The Detroit News, 5/23/11)
The Taxpayers Gave Chrysler $12.5 Billion Total. “The story of the government’s involvement with Chrysler is somewhat more complicated. In total, the government directly committed about $12.5 billion to the automaker, mostly through loans rather than an equity stake. So far, the government has gotten back about $2.5 billion in direct repayments and interest.” (Ben White, “Barack Obama Sees Auto Rescue As 2012 Plank,” Politico, 5/23/11)
DESPITE DEMOCRATS’ CAMPAIGN MESSAGE, THE AUTO BAILOUTS COST TAXPAYERS BILLIONS THAT THEY ARE LIKELY TO NEVER RECOVER
A Congressional Oversight Report From January Showed U.S. Taxpayers Still Expected To Take A $19 Billion Loss On Auto Bailouts. “A Congressional oversight panel says that a ‘starkly improved’ outlook for the auto industry has reduced the likely taxpayer loss on the bailout by more than half to about $19 billion. The previous estimate from the panel was that taxpayers would lose $40 billion of the $81.3 billion given to the automakers and their finance arms from the Troubled Asset Relief Program. The bailouts funded the automakers' operations through bankruptcy and Treasury ended up with significant equity in the various companies in return for the bailouts.” (Chris Isidore, “Auto Bailout's Estimated Cost To Taxpayers: $19 Billion,” CNN Money, 1/13/11)
• “In The End, Uncle Sam Will Probably Lose Several Billion Dollars On Its Stake In GM And Will Have Bits Of Chrysler And Ally Financial, GM’s Former Financing Arm, Left To Unload.”(Ben White, “Obama Sees Auto Rescue As '12 Plank,” Politico, 5/23/11)
Congressional Oversight Panel: “To The Extent That Success Is Defined As A Return Of Taxpayer Money, It Remains Somewhat Unlikely That All TARP Funds Invested Will Be Returned.” (“The Final Report Of The Congressional Oversight Panel,” Congressional Oversight Panel, 3/16/11)
• COP: It Is “Unclear Whether The TARP Will Ultimately Reverse” The Domestic Auto Industries Downward Trend. “The domestic automotive industry was trending downward before the financial crisis hit and it is unclear whether the TARP will ultimately reverse that trend in the long term.
” (“The Final Report Of The Congressional Oversight Panel,” Congressional Oversight Panel, 3/16/11)
Source: Republican National Committee Research, www.gop.com
