Bailout Watch 502: Feds Give GM an Extra $1b ($5.5b 'til C11)
Back at the beginning of March, GM and its camp supporters were touting the fact that they could go all the way ’til April without a fresh infusion of federal funds—sorry, “loans.” See? Things aren’t as bad as they seem, GM CEO Fritz Henderson pronounced. Cuts are paying dividends already! Deeper, faster, oh baby! Yes, well, as we said at the time, bullshit. The actual reason for GM’s small push away from the bailout buffet: GM’s outgoing CEO had sucked a cool half a billion dollars from The General’s Canadian subsidiary. And now it turns out that current CEO Fritz Henderson’s prediction that GM would need “between $2 and $4 billion” to get it to June 1 misled taxpayers by a billion dollars. “General Motors Corp. will get up to $5 billion and Chrysler LLC $500 million in short-term aid, according to a 250-page government report obtained Monday by The Detroit News.
The Detroit News reported Friday that GM would get about $5 billion and Chrysler $500 million, citing an Obama administration official, which prompted a denial from the White House.” Are we really at the point where the left hand doesn’t know what the other left hand is doing? Where a billion dollars can get lost in the back of GM’s proverbial couch? I don’t know if it’s ridiculous or frightening. I’m thinking both.