Chrysler

Chrysler's first loans came in mid-December of 2008, when Treasury Secretary Hank Paulson stepped in to rescue GM and Chrysler. On April 30, 2009, Chrysler filed for Chapter 11 bankruptcy protection. As part of the restructuring of the company, the Treasury Department agreed to lend Chrysler up to $8 billion more and take an eight percent stake in the company. Chrysler finalized its alliance with Fiat and emerged from bankruptcy protection on June 10, 2009. Treasury will not recover its remaining outstanding investment in Chrysler. You can see the full tally of the auto industry bailout here.

This investment resulted in a loss to taxpayers.

In June 2009, Treasury provided a $6.6 billion loan commitment to Chrysler Group LLC (as of March 31, 2011, $2.1 billion remained undrawn), and received a 9.9 percent equity ownership in Chrysler Group LLC (Chrysler). In January and April 2011, Chrysler met the first and second of three performance related milestones. As a result, Fiat’s ownership automatically increased from 20% to 30%, and Treasury’s ownership was reduced to 8.6%. On May 24, 2011, Fiat, through the exercise of an equity call option, purchased an incremental 16% fully diluted ownership interest in Chrysler for $1.268 billion, reducing Treasury’s ownership to 6.6% (or 6.0% on a fully diluted basis). On July 21, 2011, Fiat, through the exercise of an equity call option, purchased Treasury’s ownership interest for $500 million. In addition, Fiat paid $60 million to Treasury for its rights under an agreement with the UAW retirement trust pertaining to the trust's shares in Chrysler.

Treasury repaid its outstanding TARP loans. Treasury continues to hold a 6.6 percent common equity stake in Chrysler.