WHY would the US government have to borrow $5billion to GM/Chrysler when Chrysler is sitting on $11billion in THE BANK, which is most likely what GM is after?? I realize the US auto industry employs a lot of people, but shouldn't the car companies have been designing fuel efficient cars by now, instead of pouring so much of their resources into SUV's with up to 340 horsepower V8's?? (Cadillac Escalade) I say let the auto makers figure it out for themselves. So much for less government intervention. Things are getting way out of hand in the US these days, me think. I wonder if I can get the US government to give us the amount we discounted our US house a year ago in order to sell it??? Hmmmm.......
Treasury working on aid for GM, Chrysler merger
By Karey Wutkowski Karey Wutkowski – 1 hr 24 mins ago
WASHINGTON (Reuters) – The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp (GM.N) and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.
The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private.
Emergency financing, at least initially, most likely would be focused on GM and Chrysler and not Ford Motor Co (F.N), which is struggling but still better off financially than its U.S. rivals, the source said.
A Treasury decision could come this week, the source said.
Separately, the Wall Street Journal reported the Energy Department is working to release $5 billion in loans to GM to help it finance the merger. The money, according to the report citing a person familiar with the matter, would come from $25 billion in financing approved by Congress last month to help domestic manufacturers make more fuel efficient cars.