TARP Funds Roll Out to Auto Suppliers

Yesterday, GM and Chrysler reported that they’ll begin administering the $3.5 billion in TARP funds to their Tier 1 suppliers ($2b from GM and $1.5b from Chrysler, while Ford took a pass on the Fed’s $1.5b offer that would have reached the planned $5b). The money will be used to guarantee the suppliers’ receivables and, for those who choose, to accelerate payments. The plan is widely considered...