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View Diary: Breaking: Chrysler to be 100% Italian (65 comments)

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  •  Not on the car companies... (0+ / 0-)

    They made the bulk of their return on the banks.

    •  On the first bailout of Chrysler with (5+ / 0-)

      Lee Iacocca in 1979. First, it was a loan guarantee so the US Treasury never put up any cash. The Treasury guaranteed up to $1.5 in loans by banks. The loans were repaid five years early. The Treasury also received warrants for the loan guarantee which it cashed in for $300 million. That was a deal that worked well, much better than the more recent bailout.

      The 1979 package was a great template, the deal Bush and Obama made was terrible for the Treasury. I supported the bailout of GM and Chrysler, but the terms should have been much more favorable to the Treasury as the lender of last resort.

      "let's talk about that"

      by VClib on Wed Jan 01, 2014 at 07:45:13 PM PST

      [ Parent ]

      •  All true, but not exactly responsive...:) (0+ / 0-)
        •  Balto - I agree with you (0+ / 0-)

          The Treasury made money on the TARP bank loans and will lose money on the car loans. The car loans had the benefit of saving tens of thousands of rust belt jobs and that is why I supported the action, but the Treasury should have received better terms.

          "let's talk about that"

          by VClib on Thu Jan 02, 2014 at 07:41:56 AM PST

          [ Parent ]

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