May 4, 2009
If there is a single thing that shows what the new Chrysler contract is about, it is a clause hidden in the midst of the VEBA agreement, explaining how the funding is handled.
If – by some miracle – the stock Chrysler put in the VEBA sells for more than the 4.25 billion dollars that Chrysler promised, the VEBA has to turn the entire “profit” over to the U.S. Treasury – to help pay back the loan Chrysler got from the U.S. government.
But if the stock sells for less than 4.25 billion dollars, it’s the VEBA that takes the loss.
There it is in black and white: the Chrysler workers and retirees are bailing out the company ... and the U.S. Treasury.