Money Down The Drain: Feds Do The Math And Say It Is Impossible For Auto Bailout Dollars To Ever Be Repaid

Taxpayers face losses on a significant portion of the $81 billion in government aid provided to the auto industry, an oversight panel said in a report to be released Wednesday.

The Congressional Oversight Panel did not provide an estimate of the projected loss in its latest monthly report on the $700 billion Troubled Asset Relief Program. But it said most of the $23 billion initially provided to General Motors Corp. and Chrysler LLC late last year is unlikely to be repaid.

"I think they drove a very hard bargain," said Elizabeth Warren, the panel's chairwoman and a law professor at Harvard University, referring to the Obama administration's Treasury Department. "But it may not be enough."

The prospect of recovering the government's assistance to GM and Chrysler is heavily dependent on shares of the two companies rising to unprecedented levels, the report said.


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Hantra - 9/9/2009 2:36:04 PM

0 Boost

ZOMG! O Nooooze! Glad it took them months to do that math. I did it before I even finished reading the headline the day it was announced.

Whelan - 9/9/2009 2:45:51 PM

+1 Boost

Not surprised, they used Obama math the first time around to show payback, now using REAL dollars we see how much a fraud he is.

GTR35 - 9/9/2009 3:50:42 PM

-1 Boost

Actually, Bush did most of the bailouts

bfghemicuda - 9/9/2009 4:00:57 PM

+4 Boost

Not taking sides...Just fact,,,,,,Bushes bailouts pail in comparison to what the Obama administration has accomplished.

bfghemicuda - 9/9/2009 3:57:43 PM

+7 Boost

Even though this could be very true, It definately would be in GMs and Chryslers best interest to pay back [as a loan] what they can if not all. There are already those that won't purchase a GM vehicle because of a 60% Government ownership.

HSCenterconsole - 9/9/2009 4:10:44 PM

+4 Boost

The banks and financial institutions that received TARP money are lining up around the block to repay it (many already have). The fact that the government (aka taxpayers) will lose money on GM and Chrysler bailouts should surprise no one.

hensta - 9/9/2009 11:41:54 PM

+3 Boost

I am probably not alone in thinking I will never purchase a GM or Chrysler product unless the money is repaid.

LexSucks - 9/10/2009 11:54:11 AM

0 Boost

What's gonna happen when they need their next bailout?