Big Payoff

A Chrysler jackpot for the U.S.

Whatever its other economic failings, the Federal Government is normally not guilty of reckless stock market speculation. Nonetheless, Washington gambled on a very long shot a few years back and now stands to make a $200 million killing in Chrysler stock. The story begins in 1980, when a $1.2 billion loan-guarantee package was being assembled to save Chrysler from bankruptcy. The Chrysler Loan Guarantee Board, which had been set up by Congress, demanded that the Government be given the right to buy, at some future time, 14.4 million...

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