Thursday, May 06, 2010
About that General Motors payback
It's hard NOT to notice whose money this really is...
This is from Senator Chuck Grassley's website:
"Last week, Grassley asked the Treasury Secretary why the administration had allowed GM to use money from an escrow account at Treasury to repay this loan, allowing 'an elaborate TARP money shuffle'.
In a floor speech this afternoon, Grassley said the response he received today from the Treasury Department confirmed that taxpayers funded the loan repayment by way of cash that GM has because the federal government originally loaned that cash to GM, and then the federal government agreed to forgive some of GM’s debt during bankruptcy in exchange for stock in the company, the value of which is uncertain.
'The bottom line is that the repayment was made on the dime of taxpayers across America, and it’s misleading to say that GM repaid its TARP loans ‘in full, with interest, ahead of schedule, because more customers are buying’ GM cars,' Grassley said. 'Taxpayers remain on the hook, thanks to the failed deal cut by the government to try to save GM from bankruptcy.'
