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"The auto companies have now repaid taxpayers every dime and an ext of what my management invested in."


In the run up to his 2015 State that the Union speech, president Barack Obama was once again trumpeting his administration’s intervention in Detroit.

"Last month, the rescue of the auto sector officially involved an end," Obama stated Jan. 7 in Detroit. "The auto companies have now repaid taxpayers every dime and an ext of what my administration invested in."

In December, the Treasury department announced it sold the remainder the its 54.9 million share in allied Financial — formerly, general Motor’s financing service, GMAC — because that $1.3 billion. With the deal, Treasury Secretary Jack Lew claimed the United says was "winding under the Auto industry Financing Program," the federal routine that conserved the auto industry— or bailed it out, depending on your view.

Back in 2012, us looked at Obama’s campaign claim the GM and also Chrysler "repaid your loans." We stated it was fifty percent True, partially since the government still owned stock in both automakers and it to be too soon to to speak if taxpayers would certainly recoup your investment.

But it’s 2 years later, and the Treasury has due to the fact that sold off most of that is holdings in both companies. Therefore we made decision to take a look in ~ this worry again.

There are number of circumstances that make this confusing and complicated. For starters, the bailout that the auto market started in the waning weeks of president George W. Bush’s tenure. It ongoing during the beforehand months that the Obama administration.

All told, the Treasury department reported that the program cost taxpayers $79.7 billion, of i beg your pardon $70.4 billion was recovered. Under that estimate, the regimen lost about $9.3 billion. In April, the Congressional spending plan Office approximated that the regime would finish up costing around $14 billion.

The Obama administration, however, makes the situation that only $57.3 exchange rate of the investment came under your watch and therefore that should be all that they’re accountable for.

Let’s evaluation the timeline, beginning in 2008: bush secured $700 exchange rate to bailout the financial establishments under the Troubled legacy Relief program in October 2008. In November of the year, Obama to be elected and also soon after ~ met with bush to comment on the transition. That was during those at an early stage meetings that Obama began to lobby bush to administer some financial assistance for the auto industry, according to reports.

The New York Times wrote bush had "balked at enabling the automakers to tap into the $700 exchange rate bailout fund, in spite of warnings ... That general Motors can not survive the year."

A month later, shrub announced a $17.4 billion bailout for Chrysler and also GM that noted short-term financial relief v March 2009. He handed off to the just arrive Obama management the decision on how the companies would have to restructure themselves. The investment would grow to around $23 exchange rate in short-lived loans through the time bush left office.

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As Politico provided in December 2008, Bush’s move was a "reversal because that the White House," adding that, "President-elect Barack Obama and Democrats had long advocated that course, and Bush had actually resisted it."

The New York time reported that Obama "embraced the plan," despite he walk not talk about the details.