U.S. Treasury increases auto bailout cost estimate

CNBC ^ | 08-14-12 | Unkown

[MNJohnnie]

WASHINGTON (Reuters) - The U.S. Treasury Department has said the auto industry bailout will cost taxpayers $3.4 billion more than previously thought.

Treasury now estimates the 2009 bailout will eventually cost the government $25.1 billion, according to a report sent to Congress on Friday.

That is up from the last quarterly estimate of $21.7 billion.

Since the $80 billion bailout of the auto industry, Detroit's big automakers have moved from crisis to profit. GM and Chrysler were put through government-funded bankruptcies that slashed costs and debt.

Treasury has so far recouped about half of what was extended in grants and loans to GM and Chrysler, related retail financing arms and suppliers. Some of the money was repaid in cash, while the remaining interest was tied up in equity shares held by the government.

[MNJohnnie]

So yet another 0 idea that spent more, and deliver less, then the regime claimed.

[EGPWS]

I’m sure Mrs. Blabbermouth Shultz has a very good reason as to why it is the Republicans in Congress fault.

[massgopguy]

And he wants to do it to all manufacturing!

[DoughtyOne]

CNBC ^ | 08-14-12 | Unkown

Treasury has so far recouped about half of what was extended in grants and loans to GM and Chrysler, related retail financing arms and suppliers. Some of the money was repaid in cash, while the remaining interest was tied up in equity shares held by the government.

Word up CNBC..., grants are not repaid.

As for half of the loans being paid back, bull stuff.

As for equity shares... LOL, what's the street value of 'nothing' these days?  Oh, that's right...

More flatulence from the DNCp...