Bailouts | featured news

Portugal will elect a new government on Sunday which will lead the country through a period of deep austerity and recession after it received a 78-billion-euro ($114 billion) bailout from the European Union and IMF.

The Treasury Department said on Thursday it reached an agreement to sell its remaining 6 percent equity stake in Chrysler to Italy's Fiat in a deal that will net Washington $560 million.

The government expects to recover more money than anticipated from the auto bailout as it pulls back financially from the sector, but taxpayers still face billions in potential losses, the White House said.

Vice President Joe Biden on Saturday credited the Obama administration's intervention for the American auto industry's recovery from "the brink of extinction."

Shares of American International Group Inc fell more than 3 percent on Wednesday after the insurer and the U.S. Treasury sold $8.7 billion worth of stock.

The Treasury department said on Tuesday that automaker Chrysler Group LLC has repaid $5.1 billion in bailout loans and ended its ability to draw a remaining $2.1 billion.

Chrysler Group LLC is expected to announce today that it will repay about $7.5 billion in U.S. and Canadian government loans on May 24 -- about a month earlier than it recently said, and years ahead of the original schedule.

Bleak EU economic forecasts on Friday showed Greece will miss its debt targets this year without further reforms and a senior policymaker said Athens was not meeting the terms of its rescue package.

Speculation is growing that Greece may need a second financial bail-out from the international community

Taxpayers won't foot the bill for raises for the chief executives at any of the four firms—GM, Chrysler, AIG, Ally Financial—still receiving assistance under the federal bank bailout.