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GM CEO says government loans have been repaid
AP ^ | Apr 21 2010 | TOM KRISHER

Posted on 04/21/2010 8:39:27 AM PDT by worst-case scenario

DETROIT — General Motors Co.'s CEO said Tuesday that the automaker has repaid the $8.1 billion in loans it received from the U.S. and Canadian governments, a sign that a plan to rebuild the company is working. GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. The U.S. considered as a loan $6.7 billion of the aid, while the Canadian governments held $1.4 billion in loans. The loan payback to the U.S. government comes five years ahead of schedule, and Whitacre said it is a sign GM is on its way toward reducing government ownership of the company.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: automobiles; federalgovernment; generalmotors; gmbankruptcy; gmloans; loans
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To: sickoflibs

Even more how did they pay off the loans when they lost almost $4.3B last year?

21 posted on 04/21/2010 9:04:06 AM PDT by Boiler Plate ("Why be difficult, when with just a little more work, you can be impossible" Mom)
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To: stephenjohnbanker; CutePuppy; Condor51
”GM got a total of $52 billion from the U.S. government” “The U.S. considered as a loan $6.7 billion of the aid.” So GM paid back the INTEREST. What about the 52 billion PRINCIPAL ????

AUGUST 2009 Taxpayers Face Heavy Losses on Auto Bailout. A Congressional Oversight Panel recommends the Treasury Dept perform a legal analysis for providing TARP funds to (1) GM, (2) Chrysler Motors, (3) GMAC, their financing arm.

BIGGER QUESTION---WHERE IS THE MONEY? Americans have yet to learn the full extent of official corruption, thievery, schemes and scams involving $TRILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill.

THE WHIFF OF MADOFF J, Ezra Merkin---ousted head of GMAC (GenMotors financing arm)---got a $6 Billion taxpayer bailout---and was also feeding hundreds of millions to jailed money launderer Bernie Madoff from Merkin's four offshore investment vehicles.

BAILOUT SWILLERS Stephen A. Fineberg's private equity firm---Cerberus Capital Management LP--- owns Chrysler Motors. The US Treasury bought a $5 billion stake in GMAC (GM's financing arm), and lent $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to Merkin's GMAC, and Fineberg's Chrysler.

SWILLING TIMELINE In 2006, GM sold 51% of Merkin's GMAC to Feinberg's private equity firm Cerberus Capital Management LP (which also owns Chrysler).

HOGGING AT THE PUBLIC TROUGH In May 2004, Feinberg's "private investment group," Cerberus Capital Management, LP became majority owner of IAP Worldwide Services, Inc, one of the US Army’s largest contractors in Iraq. In Afghanistan, Feinberg's IAP runs a drug/addiction center" in Kunduz---Kunduz is the largest opium supplier in the world. BUSY LITTLE BEAVER IAP also provides infrastructure support for the British Ministry of Defence in Kandahar....apart from supporting the US Army in Basra.

BAILED OUT AND STILL SWILLING Stephen A. Feinberg's IAP also serves a broad array of federal clients including the US DOD, NASA, the US Geological Survey, the US Agency for International Development, the IRS, and a variety of other federal agencies.

BACKSTORY GMAC's Merkin and Chrysler's Feinberg paid the Israeli govt $500M to buy Bank Leumi. An “inside” deal not just anybody could get. Bank Leumi looms large in the missing billion dollar bailouts since Israel is the only place in the world where an individual can fly-in, go to a bank with a suitcase full of cash, and nobody asks where they got it, or whether taxes were paid on it.


REFERENCE Treasury Dept officials have acknowledged that most of the $23 billion provided by the Bush administration is likely to be lost.

Bush should have refused to do it (there was $15B fund already appropriated and committed but unspent - for "greening" of the auto industry - that should have been used) and could help convince the management of both companies to file for prepackaged bankruptcy, which would allow both companies (and maybe Ford, as well) to restructure their debts and union and pension contracts, reorganize and emerge far stronger, without taxpayers losing a dime. Now he is (rightly) being blamed by media and Democrats, who at the time demanded the auto companies bailout, for wasting taxpayers money.............

The report also recommends the department perform a legal analysis of its decision to provide TARP funds to GM and Chrysler, their financing arms and many auto parts suppliers. Some critics say the law creating TARP didn't allow for such funding.

DID YOU KNOW? TARP was not designed to be a pool of money available for bailout of just anything that didn't move, like a couple of bankrupt unionized companies in the automobile industry. It was very specific in its purpose to provide liquidity to frozen banking and financial system and stave off the run on the banks (attack on the financial system, by proxy) and allow the 'netting' of the [frozen] assets on the books of financial institutions, in the aftermath of fall of Lehman Bros and run on trillions of dollars in the money market funds in the consequent "breaking the buck" by Reserve Primary Fund managed by Bruce Bent.


22 posted on 04/21/2010 9:06:36 AM PDT by Liz (If teens can procreate in a Volkswagen, why does a spotted owl need 2000 acres? JD Hayworth)
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To: Liz; All

Speaking of bailouts and government control of business...

McCain seems to be a holdout for Obama in his new Senate Bill 3217, also known as the Restoring American Financial Stability Act of 2010, introduced by Democrat Senator Chris Dodd of Connecticut.

More info on that from the Tea Party.

The vast majority of Tea Party Patriots’ Local Coordinators from all over the country agreed on our most recent weekly conference call that this is a bad bill and we oppose it.

In short it grants permanent, unlimited bailout authority to the Federal Reserve. It’s like TARP forever without the nasty, unpopular debates and votes in Congress. Beyond that it gives the Fed the power to takeover vaguely defined “nonbank financial companies”. And the Fed has the power to decide what constitutes a “nonbank financial company” on a case by case basis.

So, what are we asking you to do?

Four things:

1.) Please contact your own Senators first and voice your opposition to this bill. If possible, physically go in person to the local home offices of your two Senators and speak to someone there who will take note of your opinion and pass it on. If you’re not able to go in person, please call, email, and fax the offices of both Senators from your state. (Find Your Senators by State on the Senate Website)

2.) Call, email, and fax these 8 Republican Senators who are not yet 100% opposed to this bill:

Bob Bennett of Utah (202) 224-5444

Susan Collins of Maine (202) 224-2523

Christopher Bond of Missouri (202) 224-5721

Saxby Chambliss of Georgia (202) 224-3521

Bob Corker of Tennessee (202) 224-3344

John McCain of Arizona (202) 224-2235

Olympia Snowe of Maine (202) 224-5344

Scott Brown of Massachusetts (202) 224-4543

3.) Write Letters about this issue to your local paper for publication on or before Sunday. Also leave comments on as many news blogs and websites related to this subject as you can find.

4.) Forward this message to as many people as you can and ask them to take these same 4 steps as soon as possible. Use the full power of your circle of influence to move others (at least 1 more person) to take action.

Once again it’s up to us, you and your fellow Tea Party Patriots, to defend America from out of control government.

23 posted on 04/21/2010 9:09:02 AM PDT by AuntB (WE are NOT a nation of immigrants! We're a nation of Americans!
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To: All

Ezra Merkin Relationships Map (interactive at web site) NOTE: Daphne is Merkin's sister.


THE MERKIN STORY J. Ezra Merkin lives in a posh duplex at 740 Park Ave, Manhattan, known as the richest address in NYC. Merkin is the son of the late Hermann Merkin, a lion of Jewish philanthropy who gave millions to help build Yeshiva University, the Fifth Avenue Synagogue, and NYC's Merkin Concert Hall. Merkin's father was a director of the Israel Discount Bank of New York......the bank US investigators investigated for money laundering fraud.

MERKIN BIO Jacob Ezra Merkin (born 1954) is an American money manager, financier, and philanthropist. He served as the Non-executive Chairman of GMAC until his resignation on January 9, 2009, at the insistence of the U.S. government.

He is the general partner of Gabriel Capital LP, a $5 billion family of hedge funds.

On April 6, 2009, Mr. Merkin was charged with civil fraud by the State of New York, for "secretly steering $2.4 billion in client money into Bernard Madoff's Ponzi fraud without their permission."

Merkin is the son of Hermann Merkin, a prominent banker, philanthropist, and author, and Ursula Merkin. He is the brother or Daphne Merkin, a writer. He is married, and the father of four children.

Merkin attended Ramaz, an Upper East Side Modern Orthodox prep school, two yeshivas in Israel, then Columbia University and Harvard Law School.

He briefly worked for the law firm Milbank Tweed. But in the early 1980s he moved on to Wall Street finance, his father’s business, working at a hedge fund run by Alan Slifka, his father's friend.

There he met Joel Greenblatt, who founded Gotham Capital in 1985, where Merkin worked as an analyst until 1988. “It’s very, very difficult for Ezra to make decisions. He worried about the big picture, fretted over allocations. His gift was that he was a world-class salesman. He recognized that many people didn’t have (investment decision) confidence, that if people had confidence in him, then he could give them confidence,” said one money manager who worked with him over the years.

In 1995, he paid $11 million for an apartment at 740 Park Avenue, an 18-room duplex formerly owned by Ron Perelman, a member of his synagogue. In 2003, he began to collect 12 Mark Rothko paintings, the largest private collection in the world, worth an estimated $150 million.

In 1988, Merkin started Gabriel Capital to raise capital, and funnel it to managers in exchange for a fee.

By 1992, Merkin was raising money and co-managing securities with and for Stephen A. Feinberg, a manager whose private-equity firm Cerberus Capital Management, later bought controlling shares in Chrysler (80%) and GMAC (51%, at a cost of $ 6.4 billion), the financing arm of General Motors.

Merkin invested his funds into Cerberus and its portfolio companies. His Gabriel fund invested $79 million in Chrysler, $66 million in GMAC, and $67 million in Cerberus partnerships, according to year-end statements. On March 30, 2009, it was announced that Cerberus would lose its controlling stake in Chrysler.

Merkin manages Ascot Partners LP, a hedge fund which was valued at $1.8 billion prior to the collapse of Bernard L. Madoff Investment Securities LLC.

24 posted on 04/21/2010 9:09:42 AM PDT by Liz (If teens can procreate in a Volkswagen, why does a spotted owl need 2000 acres? JD Hayworth)
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To: Boiler Plate; ding_dong_daddy_from_dumas; stephenjohnbanker; MaggieCarta
RE :”Even more how did they pay off the loans when they lost almost $4.3B last year?

I was wondering that at the gym when watching this on MSNBC. And this doesn't include all the ‘cash for clunkers’ money the government now owes but paid to buy new GM cars.

25 posted on 04/21/2010 9:17:51 AM PDT by sickoflibs ( "It's not the taxes, the redistribution is the federal spending=taxes delayed")
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To: worst-case scenario

Are the remaining illions gifts to the union thugs?

26 posted on 04/21/2010 9:19:39 AM PDT by pallis
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To: Liz

We don’t know where ANY of the money is, or went.

These thieves make Tammany Hall look like Boy Scouts!!

27 posted on 04/21/2010 9:22:49 AM PDT by stephenjohnbanker (Support our troops....and vote out the RINOS!)
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To: Spunky
Am I understanding this correctly? The U.S. (us) gave them $52 billion, but we only considered $6.7 as a LOAN, and the rest of the $52 billion was a gift?

Don't worry, your ponies and rainbows are going to come soon, the Obamassiah promised!

28 posted on 04/21/2010 9:24:39 AM PDT by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)
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To: SmokingJoe
No mention of the $12 billion in unfunded retirement programs. Who do they think will be sending the retirees a check sometime in the future?
29 posted on 04/21/2010 9:46:29 AM PDT by Recon Dad ( USMC SSgt Patrick O - 3rd Afghanistan Deployment - Day 183)
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To: Recon Dad

I don’t believe it, no way they could have repaid the money already, we are being lied to.

30 posted on 04/21/2010 9:47:17 AM PDT by Scythian
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To: Spunky

The $6.7 billion is just the outstanding loan amount. The remainder of the $52 billion was converted to equity. The US gov’t still owns a big chunk of GM, I forget exactly how much. Other owners are the UAW and Canadian gov’t.

31 posted on 04/21/2010 10:02:11 AM PDT by javachip
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To: worst-case scenario

“GM CEO says government loans have been repaid”

Oh. Can Rick Wagoner have his job back now?

32 posted on 04/21/2010 2:22:53 PM PDT by RoadTest (Religion is a substitute for the relationship God wants with you.)
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To: Liz; All
Most of GM / UAW government "loans" were converted into "equity". You "own" it folks, whether you like it or not...

33 posted on 04/21/2010 5:50:51 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: worst-case scenario

As usual, the govt. hack AP gets a story WRONG:

“GM Did Not Really Pay Back Its Loan”

34 posted on 04/24/2010 10:24:00 PM PDT by Sun (Pray that God sends us good leaders. Please say a prayer now.)
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