US taxpayers likely lost $1.3 billion in Chrysler bailout

WHAT: The Treasury Department sold its final 6 percent stake in Chrysler to Italian automaker Fiat for $560 million, leaving U.S. taxpayers stuck with a $1.3 billion loss.

HOW: The bailout paid $12.5 billion during the bankruptcy conversion of “Old Chrysler” into the new Chrysler Group. Now $11.2 billion is considered repaid or excused.

WHY IT’S OUTRAGEOUS: Chrysler was given until 2017 to return all bailout funds. If the Treasury waited full term, loan interest would have greatly reduced the government’s losses.

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