About that “loan”: Obama team writes off $7 billion taxpayers loaned Chrysler

[BigBearJohn]

ON RAWSTORY:

Earlier this week, Senate Democrats quashed an attempt to amend a bankruptcy bill that would have given judges the power to reduce the principal on mortgages of distressed homeowners, swallowing an explanation from the banking industry that reducing the value of mortgages would make it harder for other Americans to get a loan.

Apparently, though, if you’re a car company formerly owned by a private equity firm — and soon to be taken over by a powerful union and an Italian automaker, there are different rules.

As part of the company’s bankruptcy filing, Chrysler LLC will not repay US taxpayers more than $7 billion it received as part of the company’s bailout earlier this year. Instead, the US will get an 8% ownership in a firm whose value continues to deteriorate by the day.

The detail was buried in Chrysler’s bankruptcy filings last week, and overlooked until today. A senior Obama official confirmed the news to CNN.

The Obama Administration’s Treasury Department has agreed to give up the $4 billion “bridge loan” extended by the Bush adminstration, a $300 million fee on the loan, and another $3.2 billion the Obama administration agreed to shell out — last week.

SOURCE
(The story is on RAWSTORY, but as I just went back to their site, it says they are uploading a new system and will be available later)

[babylonsister]

1. Your source is DU? Come on! nt

[BigBearJohn]

2. Whoops! Thanks. I'll change it.

[babylonsister]

5. Rawstory is NOT my cup of tea. They are wrong as much as they're

correct. I don't trust them. But that's me.

[Merlot]

3. "Senate Democrats quashed ..."

Shouldn't that be some Democrats and ALL repubs?

[Occam Bandage]

4. Yeah, I don't like the trend of looking at votes where

the Republicans voted 0-40, and the Democrats voted 47-12, and having people say "OMG THE DEMOCRATS DEFEATED IT."

No, the Republicans defeated it, with a handful of Democrats helping them.