Chrysler repays TARP loans six years early
The final payments made by the Chrysler Group to remove them from debt of the Federal Government included a $500 million dollar payment to the US Treasury Department for 98,461 shares of the company along with $60 million dollars paid to the United Auto Workers VEBA retirement trust fund. Now that Chrysler and parent company Fiat have removed themselves from the debt to the US taxpayers, they will not only stand to shed the dark cloud hanging over them by skeptics of the bailout loans of 2009, but it also allows the company to get out from under the high interest rates applies to said loans.
US Assistant Secretary for Financial Stability Tim Massad offered these comments on Chrysler paying off the TARP loans:
“With today's closing, the U.S. government has exited its investment in Chrysler at least six years earlier than expected. This is a major accomplishment and further evidence of the success of the administration's actions to assist the U.S. auto industry."