Bailout Watch 125: U.S. Treasury Dept. Could Allocate $5b to GM-Chrysler This Week
According to Karey Wutkowski at Reuters, the “The Treasury Department is considering aid of at least $5 billion, which could include direct capital injections and government purchases of auto loans.” The usual anonymous source claimed the decision could be made this week. Wutkowski reports that GM and presumably Chrysler have been lobbying the Bush administration for the money, no doubt made easier because Cerberus’s chairman, John Snow, is the former Bush-appointed Secretary of the Treasury. Purchase of bad auto loans is likely to anger many, but the “direct capital injection”– a suitcase full of freshly-minted money– is something else altogether. Will you, the new shareholders get any stock in GM-Chrysler? Of course not. Nor is there likely to be any accountability to the government beyond a nebulous promise by Rick Wagoner that “he’s working hard.” The kicker? The $5b is only the beginning. “People briefed on the merger discussions have previously said GM would need a minimum of $5 billion to start restructuring Chrysler’s operations. The total amount needed could reach $10 billion.”
Immensely bored law student. I've also got 3 dogs.
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John Horner: "Isn’t there some way we can accelerate the process and kick the current administration to the curb on November 5th once we have a new President Elect?" John, John, John, your argument is that a new administration (I'm assuming Obama) won't do what the current administration is doing. That's right - they will do more of exactly what you do not want them to do, which is had over your money to Detroit to piss away. If The ONE is elected, you should hope that they delay the inaugeration as long as possible.