Monday, March 2, 2015

Bush offers carmakers 4-month loans; punts to Obama

Bush offers GM and Chrysler 4-month loans, leaves longterm government-auto decision for Obama

Bush offers carmakers 4-month loans; punts to Obama

Specialist Arthur Andrews, foreground, works at his post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)
Specialist Arthur Andrews, foreground, works at his post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

The Bush administration, which doesn't want old Detroit to die in its final days in office, plans to lend General Motors and Chrysler $13.4 billion from federal financial bailout (TARP) funds to tide them over until March, after the GOP balked an earlier deal in Congress.

What happens after March? Unless car orders pick up or some new lenders or investors want to get involved, the Obama administration and the new Democratic Congress will have a choice of letting the overbuilt, overpriced carmakers declare bankruptcy and reorganize, or else cobbling together a longer-term taxpayer bailout.

Link to GM and Chrysler bailout terms here

The Bush administration, which doesn't want old Detroit to die in its final days in office, plans to lend General Motors and Chrysler $13.4 billion from federal financial bailout (TARP) funds to tide them over until March, after the GOP balked an earlier deal in Congress. What happens after March? Unless car orders pick up or some new lenders or investors want to get involved, the Obama administration and the new Democratic Congress will have a choice of letting the overbuilt, overpriced carmakers declare bankruptcy and reorganize, or else cobbling together a longer-term taxpayer bailout. Link to GM and Chrysler bailout terms . 

 

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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