Obama Wants Banks to Pay for Auto Bailout Losses
The White House wants the nation's largest financial institutions to repay taxpayers for the costs of bailing out banks and automakers, reported The Detroit News.
Under the proposal, the largest 50 banks -- including GMAC -- would pay $90 billion over 10 years to cover taxpayer losses under the $700 billion Troubled Asset Relief Program.
Despite receiving bailout money, General Motors Co. and Chrysler Group LLC would not be required to pay new taxes; the banks would repay taxpayers for the anticipated $30.4 billion loss on the $86 billion auto bailout.
The White House defends its decision not to tax automakers -- arguing the banks helped slow auto sales.
Gene Sperling, a senior adviser to Treasury Secretary Timothy Geithner, told reporters on a conference call that Detroit-based auto lender GMAC will be one of the institutions covered by the new fee.
He said the administration is committed to getting automakers to repay their outstanding loans.
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →