Say Goodbye To Most Of The $81 Billion of TARP Invested In the Auto Industry

Yesterday, the Congressional Oversight Panel released a report which concluded: "Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount. The estimates of loss vary."  Treasury has admitted $23 b. may be subject to "much lower recoveries."  CBO recently raised its estimate of taxpayer losses from TARP investments to the auto industry to 73% or $59 b.

The COP report is particularly detailed in its recounting of the history of the auto industry bailout and its analysis of where we stand today.  It made numerous recommendations for Treasury to clarify its objectives, to increase the transparency of its actions, to order full financial disclosures from the industry, to provide a legal justification for its intervention, and to consider placing its GM and Chrysler shares in the hands of "an independent trust that would be insulated from political pressure and government interference."