Troubled Asset Relief Program : Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM

Chrysler Corporation; General Motors Corporation; United States. Department of the Treasury. Office of Financial Stability; United States. Government Accountability Office

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Title:

Troubled Asset Relief Program : Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM

DATE: November 2, 2009

AUTHORS:

ABSTRACT: The Department of the Treasury (Treasury) provided $81.1 billion in Troubled Asset Relief Program (TARP) aid to the U.S. auto industry, including $62 billion in restructuring loans to Chrysler Group LLC (Chrysler) and General Motors Company (GM). In return, Treasury received 9.85 percent equity in Chrysler, 60.8 percent equity and $2.1 billion in preferred stock in GM, and $13.8 billion in debt obligations between the two companies. As part of Government Accountability Office's (GAO) statutory responsibilities for providing oversight of TARP, this report addresses (1) steps Chrysler and GM have taken since December 2008 to reorganize, (2) Treasury's oversight of its financial interest in the companies, and (3) considerations for Treasury in monitoring and selling its equity in the companies. GAO reviewed documents on the auto companies' restructuring and spoke with officials at Treasury, Chrysler, and GM, and individuals with expertise in finance and the auto industry.

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Chrysler Corporation , General Motors Corporation , United States. Department of the Treasury. Office of Financial Stability and United States. Government Accountability Office. Troubled Asset Relief Program : Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM , Washington, D.C.: U.S. Govt. Accountability Office, November 2, 2009, https://fraser.stlouisfed.org/title/5045, accessed on April 19, 2024.

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ALTERNATE TITLES:

Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM

NOTE: GAO-10-151.

PUBLISHER: U.S. Govt. Accountability Office

PLACE: Washington, D.C.

DIGITAL COPY SOURCE: U.S. Govt. Accountability Office

SUBJECTS:

THEME:

Financial Crisis of 2007-2009