During the pit of the crisis there was perhaps no more dramatic moment on TV than when CNBC interviewed a Long Island Chrysler dealer who had just seen his franchise destroyed by the Feds as part of a breakneck restructuring of the automaker.
His life’s work worth at least $1 million gone just like that.
Well, maybe it wasn’t necessary.
At least that’s part of the message from TARP inspector general Neil Barofsky in a new report
The report by Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program of the Treasury Department, said both carmakers needed to shut down some underperforming dealerships. But it questioned whether the cuts should have been made so quickly, particularly during a recession. The report, released on Sunday, estimated that tens of thousands of jobs were lost as a result.
“It is not at all clear that the greatly accelerated pace of the dealership closings during one of the most severe economic downturns in our nation’s history was either necessary for the sake of the companies’ economic survival or prudent for the sake of the nation’s economic recovery,” the report said.
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