US Treasury Secretary Timothy Geithner recognizes that taxpayers remained at risk of losses on investments in General Motors Co. and Chrysler Group. However, he thinks that there's a "reasonable chance" that aid to the companies may be regained. Before the US Senate Appropriations subcommittee, Geithner testified that he had seen GM make claims in a commercial that it has repaid its government loans.
Geithner wanted to clarify that there still is a risk of taxpayer losses on GM and Chrysler. Geithner added that the risk stems from the substantial equity investments left in those companies.
But he believes that the risk of loss is only a "fraction of what [they] feared." He also stated that there was a "reasonable chance now" that that the US Treasury will be able to get back the dollars that it places in these companies since January 2009, which is when the Obama administration took office. Geithner confirmed that the Obama administration sought to exit investments in private companies as fast as possible. [via autonews]
