Friday, April 23, 2010

GM Robs Peter to Pay..., Well, Peter

General Motors announced with much fanfare and ballyhoo that it had repaid the entire $6.7 billion in TARP money it had received to stave off bankruptcy and they did it five years early. That would be great if it were true.

You Tube via Gateway Pundit
Sen Chuck Grassley (R-IO) wrote in a letter to Treasury Secretary Tim Geithner that it was an "elaborate money shuffle" saying GM had taken the money from a Treasury escrow account to repay the TARP bailout monies.
"Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. ..."A debt-for-equity swap is not a repayment."
Avery Fellows at Courthouse News Service writes:

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."
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. He said the government could see a huge loss from bailout funds paid to the auto industry, as the manufacturers' ability to repay depends on car sales.
"The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell GM stock in the future," Grassley wrote.

In his letter, Grassley asked Geithner why the agency allowed GM to use the escrow funds to repay the loan.
Grassley also asked for the amount of funds remaining in the escrow account that may be released to GM, and when such a release would occur.
Grassley quoted GM Vice Chairman Stephen Girsky, who, when asked in a television interview this week if the company was using government funds to repay government loans, said, "Well listen, that is in effect true, but a year ago nobody thought we'd be able to pay this back."
And the money still hasn't been paid back, moron! Using one credit card to pay another credit card is not repayment of debt; it's a sure path to insolvency and bankruptcy. I'm still owed 6.7 billion dollars and a year from now I'll still be owed 6.7 billion dollars.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.


Pub said...

Maybe no one will miss you when you die.

Indigo Red said...

That's the plan, Pub, and it's heartwarming to know that a Liberal is so concerned, understanding, accepting, tolerant, and devoid of all that hate stuff.

Pub said...

I'm a conservative. That's what you said about the white attorney who was killed in Mississippi, hypocrite.

Indigo Red said...

That on topic comment was written at Gateway Pundit, Pub, where the topic was white suppremacist killed by black neighbor. The topic here is the General Motors' dishonesty about repaying the loan in in full. Perhaps your reply would be appropriate there, but it's O/T here.

Doubt you're a conservative, Pub, because you used 'hypocrite' wrong.