User profile: beaufort

Joined: Jan. 10, 2009

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Posted on: Chrysler doesn’t deserve bailout

Cerberus Capital Management is proving remarkably adept and scooping up Fed bailout money. Not only has Cerberus-controlled Chrysler LLC received a $4 billion bailout from the U.S. government but, unlike publicly owned General Motors, they are not required to tell the public how that money is being spent.

According to a recent Bloomberg article, Chrysler is only required to report its finances only to the U.S. Treasury, which has been noncommittal whether it would release any information to the public. http://www.bloomberg.com/apps/news?pid=2...

Following the $6 billion GMAC bailout, Cerberus is now preparing to return to the Federal trough with a proposal to qualify Chrysler Financial, the auto loan company that services Chrysler dealerships, for Federal money. http://ftalphaville.ft.com/blog/2009/01/...

And by the way, it Chrysler Financial is no longer owned by Chrysler LLC, but has been purchased by a division of Cerberus.

What does that suggest?

Along with the sprawling Auburn Hills Chrysler headquarters that were quietly sold to Cerberus more than a year ago, the private equity company seems to be systemically stripping Chrysler LLC of its most valuable assets---resources the company will need if it has any hopes of returning to profitability, or, more likely, being successfully sold to a foreign auto maker. As it stands today, Chrysler LLC pays rent to---you guessed it---Cerberus.

Finally, the fact that former Secretary of Treasury John Snow is involved with negotiating TARP fund disbursements with --- surprise--- the current Secretary of Treasury surely appears at the very least a mighty damn cozy affair.

http://blog.pennlive.com/leftcoast/2009/...

(Suggest removal) 1/10/09 at 5:48 p.m.

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