But it turns out there are debts he’s willing to forgive: those to you and me.
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.
“The reality now is that the face value [of the $4 billion bridge loan] will be written off in the bankruptcy process,” said the official, who added that the 8% equity stake that Treasury will be receiving as part of the company’s reorganization is meant to compensate taxpayers for the lost money.
“While we do not expect a recovery of these funds, we are comfortable that in the totality of the arrangement, the Treasury and the American taxpayer are being fairly compensated,” said the official.
First, what value will we see for our money? Any? What will the American People get out of Chrysler, particularly when President Neophyte will be able to dictate the types of cars Chrysler can and can’t make, burying lines that make $$$ and forcing them to make cars that people, even Climahysterics, don’t want?
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.
We’re going to write off something like $8.5 billion in return for a chump stake in a chump company? I don’t know about you, but I could use the 28 bucks out of my pocket that represents—to pay for gas that has crept back up above $2 a gallon.
The president gets all Godfather on the hedge fund presidents, yet turns into Grandpa Walton when the money is ours. Somebody check the Constitution to see whom he works for. I’m not sure anymore.