Treasury Sells Off Final Remaining Stake in Chrysler
The $12.5-billion bailout of Chrysler Group is now officially over as the Treasury Department sold its remaining 6% stake to Italian automaker Fiat (PINK:FIATY) for $560 million on Thursday. Chrysler paid back $11.2 billion of its loans from the Troubled Asset Relief Program, so with all that said and done, U.S. taxpayers were left to foot the remaining $1.3 billion bill.
Despite losing nearly 10% of the Chrysler bailout money, U.S. Treasury Assistant Secretary Tim Massad, who oversees the TARP program, says the bailout was a success. “With today’s closing, the U.S. government has exited its investment in Chrysler at least six years earlier than expected,” he said. Furthermore, had it not been for the bailout, thousands of people would have lost their jobs at Chrysler alone, and without bailing out the industry as a whole, lost job figures would have been in the millions.
When combined, Chrysler and General Motors (NYSE:GM) received $80 billion from TARP, of which officials expect to lose a total of $14 billion, a downwardly revised figure that’s only a third of what was originally projected when the government first chose to force the companies into bankruptcy restructuring in 2009.
Stocks to Watch: Ford (NYSE:F), General Motors (NYSE:GM), Toyota (NYSE:TM), Honda (NYSE:HMC), Tesla (NASDAQ:TSLA), Daimler (PINK:DDAIF), BMW (ETR:BMW), Volkswagen (PINK:VLKAY), Audi (ETR:NSU), Nissan (PINK:NSANY).