Shock: General Motors did not repay loans

[MarketNeutral]

“Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM, Grassley wrote. A debt-for-equity swap is not a repayment … In a hearing Tuesday before the Senate Finance Committee, TARP overseer Neil Barofsky confirmed that GM was using Treasury funds to make the loan repayment.”

General Motors repaid TARP loans with other bailout funds instead of company earnings, Republican Sen. Chuck Grassley claimed Thursday in a letter to Treasury Secretary Tim Geithner. The Iowa senator called the maneuver an “elaborate TARP money shuffle,” saying the auto maker siphoned funds from a multibillion-dollar Treasury escrow account to repay its bailout debts.

“Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM,” Grassley wrote. “A debt-for-equity swap is not a repayment.”

Grassley’s concern arose from a quarterly TARP oversight report issued Tuesday, which stated: “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.”
http://www.thecomingdepression.net/main-street/scams/shock-general-motors-did-not-repay-loans-as-claimed/

[MarketNeutral]

Monetized the debt.

Grassley is slamming GM for using U.S. government accounting practices.

[I am me, I am free]

But...but...but I just saw a Govt. Motors spot on Tel Avivision where the Pres. of GM was gushing about paying off their govt. bailout loans SIX YEARS before they were due to be repaid.

Are you suggesting he was lying to me???

[mick silver]

this is call the texas two step ... hell i had a good laugh the other night when i saw the pres of gm say they have repay the loan ... hell the guy needs to learn how to lie better ... they will never pay back the money we the tax payer gave them ... i mean the gov gave them that they rob from us

[keehah]

'Give me 10 dollars and I will give you back a dollar and call the rest an investment and we will call it even.'

[iOWNme]

GM took out a full page color ad in the Arizona Repulsive that unequivocally stated that they had already paid back the loan, and that they were ready to start making profits again.

Now was this before or after they took the bailout money and built factories in China with it?

[Korbin Dallas]

I just got an unsolicited e-mail from those bastards. What about the $49 billion in stock the gubbermint bought and the additional 10 billion + in TARP money? Then borrow 5 billion and pay the orig. 5 billion back, all while lying to the public about how they paid it all back? Sounds like they took a page out of the Obama playbook.

[skidmark]

But...but...but I just saw a Govt. Motors spot on Tel Avivision where the Pres. of GM was gushing about paying off their govt. bailout loans SIX YEARS before they were due to be repaid.

Are you suggesting he was lying to me???



LOL at Tel Avivision!

[Ifyouseekay]

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[Ash_Williams]

They paid back the loan and are profitable again? This is great news. A definite sign the economy is turning around!