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Entries in U.S. Department of Treasury (4)

Tuesday
Dec132011

US Deficit Could Come in Under $1 Trillion for Fiscal Year 2012

Stephen Chernin/Getty Images(WASHINGTON) -- Now is not the time to break out the champagne but at least some economic indicators seem to be headed in the right direction.

According to Treasury Department figures released Monday, the federal deficit during the first two months of the 2012 fiscal year that began on Oct. 1 shows the government shortfall running at about $236 billion.

Again, don't pop the cork just yet because that's merely $55 billion less than in October and November 2010.

Still, if this pattern continues over the next 10 months, the Congressional Budget Office predicts that the 2012 federal deficit will come in at around $973 billion by the time Sept. 30, 2012 rolls around.  That would mean a federal deficit of under $1 trillion for the first time in four years.  This year it was $1.4 trillion.

However, if Congress gets around to extending the Social Security payroll tax cuts and unemployment benefits, chances are the deficit will wind up over $1 trillion anyway.

Copyright 2011 ABC News Radio

Friday
May272011

Fiat To Buy U.S.Treasury's Stake In Chrysler

PRNewsFoto/Chrysler Group LLC, Jim Fets(DETROIT) -- On Friday Fiat announced that it notified the U.S. Department of Treasury that it would exercise its option to buy the Treasury’s 6 percent interest stake held in Chrysler.

In a statement, Fiat said the purchase price will be determined by the equity value of Chrysler to be agreed upon in 10 business days. The deal would give the Italian company a majority stake at 52 percent and a further 5 percent by the end of the year if it meets certain government requirements.

Fiat’s announcement comes after Chrysler repaid loans of $7.6 billion to the United States and Canadian governments on Tuesday. Fiat previously had 30 percent stake in Chrysler and bought an additional 16 percent on Tuesday after the loan repayment

Copyright 2011 ABC News Radio

Monday
May022011

T-14 Days to Debt Limit; Treasury to Start Extraordinary Measures

Lauren Victoria Burke/ABC NEWS(WASHINGTON) -- The Treasury issued another warning to Congress Monday: pass a debt ceiling increase before May 16 or the federal government will be running on fumes.

In a letter from Secretary Timothy Geithner to congressional leaders of both parties, the secretary says that the May 16 deadline mentioned in an April letter is still the date certain for Uncle Sam busting through his congressionally mandated credit limit of $14.3 trillion.

He also reiterated the “catastrophic economic impact that would be felt by every American” should the Congress not act to expand the government’s ability to borrow.

“In my last letter, I described in detail the set of extraordinary measures Treasury is prepared to take in order to extend temporarily our ability to meet the Nation’s obligations if an increase is not enacted by May 16, when we estimate the limit will be reached,” wrote Geithner. “Because it appears that Congress will not act by May 16, it will be necessary for the Treasury to begin implementing these extraordinary measures this week.”

According to the letter, officials in the Treasury Department will stop issuing State and Local Government Series (SLGS) Treasury securities on Friday. Those bonds help states and cities fund infrastructure improvements. While the end user for this debt is not the federal government, the bonds count against the congressionally approved debt limit.

Geithner also provided details on the next set of extraordinary steps the Treasury will undertake to keep the federal government under its credit limit.

Starting on May 16, he says the Treasury will tap into several civil service retirement funds to keep the government functioning. Under existing law, any depletion these funds suffer under the emergency actions will have to be replaced once the debt limit is raised by Congress.

Using these actions will stretch the Treasury’s ability to fund government operations until “… about August 2, 2011, approximately three weeks later than was forecast last month.”

Earlier Monday the Treasury Department issued details of its Quarterly Refunding needs, saying it will need to borrow some $142 billion in the second quarter which ends in June -- that’s lower than the original estimates thanks to higher tax receipts and lower spending. Monday’s report also said that the Treasury will need to issue $405 billion in the third quarter to continue government operations.

Copyright 2011 ABC News Radio´╗┐

Thursday
Oct282010

GM to Return $2.1 Billion to Taxpayers

Photo Courtesy - Getty Images(WASHINGTON) -- The U.S. Department of Treasury Thursday accepted an offer by General Motors to repurchase stock that would give $2.1 billion back to taxpayers.

GM will repurchase its $2.1 billion of Series A preferred stock issued under the Trouble Asset Relief Program.

With the repurchase, taxpayers will have received a total of $9.5 billion from GM through repayments, interest, and dividends, since the company emerged from bankruptcy in July 2009.

That leaves $40 billion in Treasury Department funds invested in GM.

Copyright 2010 ABC News Radio
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