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Old May 10th, 2010, 07:14 PM   #1
ovrlnd
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Default Oh Gee...feds acknowledge GM repaid loan with loan money

what complete and utter bullshit.
link
http://www.sfgate.com/cgi-bin/blogs/...id=62415&tsp=1

Quote:
Treasury says GM loan repayment was proper

A U.S. Treasury Department official acknowledged that General Motors repaid loans from the U.S. and Canadian governments with funds from those same governments, but said that was always the plan.

Last week, Sen. Charles Grassley, R-Iowa, said in a letter to Treasury Secretary Timothy Geithner that the loan repayment GM is touting in ads "appears to be nothing more than an elaborate TARP money shuffle."

Herbert Allison, assistant treasury secretary for financial stability, responded to Grassley on Geithner's behalf. In a letter, he said the loan was repaid from an escrow account at GM, not at the Treasury as Grassley had stated.

However, "The money used to fund the escrow account came from a portion of the proceeds of a loan made by both the Treasury and the Canadian goverment. The escrowed funds were expected to be used for extraordinary expenses, and a portion of the funds were so used," Allison wrote.

He pointed out that, "It has long been public knowledge that GM would use these specific funds to repay the Treasury and Canadian loans, if it did not otherwise need them for expenses."

Allison added, "In making its April 20 loan repayment, GM determined that it did not need to retain the escrowed funds for expenses. The fact that GM made that determination and repaid the remaining $4.7 billion to the U.S. govenrment now is good news for the company, our investment and the American people."

Allison did not say whether GM, in its ads touting the loan repayment, should have disclosed that it was repaying the government with government funds or that GM is still sitting on about $50 billion in taxpayer money that was originally a loan but later converted mostly to stock.

Allison did write, "As is widely known, Treasury continues to hold $2.1 billion in preferred stock and 60.8 percent of GM's common equity that it received in the restructuring in July 2009."



Read more: http://www.sfgate.com/cgi-bin/blogs/...#ixzz0nZislQWl
tim allen's comment on facebook
Quote:
Tim Allen It's so hard to not get angry at both General Motors and the compliant
Feds when I dive into this version of "we paid back our loan in full”
bullshit. You do your own research but you will find similar
information. Depending on how clear the writer is will depend on how
it’s understood. This attached article is understandable to me. It’s
crap and funky and makes me want to take a shower. These pinheads live
by another set of rules, and clarity & truth are foreign concepts.
It’s always versions of the
truth. They did not tell the truth.
They didn't pay anything off with their own money, which is how most
humans define “paid off a loan”, that is the truth. They all
should have to sit in a corner and have their mouths washed out with
soap.
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