Skip to comments.Government Motors Repayment Fraud
Posted on 04/23/2010 6:50:30 PM PDT by raptor22
General Motors lost $3.4 billion in the fourth quarter of 2009 and is still struggling to reorganize so the company can try to eke out a profit. This grim reality didn't stop GM from making hay last week for supposedly paying back a $6.7 billion government loan five years ahead of schedule. What was left unsaid was that the automaker used another kitty of taxpayer cash to pay off the earlier government loan. This is an accounting shell game, not progress.
Previously unreleased documents supplied to The Washington Times reveal that GM specifically used funds it received from the Troubled Asset Relief Program to pay off the government loan. According to Neil Barofsky, the special inspector general for TARP, $4.7 billion of $6.7 billion - 70 percent - of what GM paid back came from TARP money the company received. "The one thing a lot of people overlook with this is where they got the money to pay the loan," Mr. Barofsky told Fox News' Neil Cavuto on Wednesday. "It isn't from earnings." The numbers are based on a quarterly report Mr. Barofsky's office provided to Congress last week.
(Excerpt) Read more at washingtontimes.com ...
Yeah, and guess what ...the govt just turns around and spends the money paid back over again. Their own private slush fund.
yeah and they have 9 Billion in Union retirement benefits that the US taxpayers will pay too
This is really starting to piss me off.
Glad this is making into main stream. The alphabet soup news pods repeated over and over last week about it. Probably never hear about GM again.
Bailing out Government Motors was a GM - GIANT MISTAKE.
An ad from the CEO of GM will make a difference in November.
What Fraud??? they just paid Bailout Money with TARP money.
kinda like paying your American Express with your MASTERCARD.
Actually, this regime makes PONZI look like a CHOIR BOY!!
The fact that the Chairman of GM thought we'd believe this BS, especially with GM's current earnings (or lack thereof), is an insult to consumer and to Americans in general. We don't like liars, Mr. Chariman, whether they be government-controlled stooges or Presidents.
I'll never buy another GM product, and I've own several.
“Bailing out Government Motors was a GM - GIANT MISTAKE.”
Thanks for posting. I’ve been looking for something on this since I heard their commercial and thought something was rotten in Denmark.
Ir grates on me when that idiot President or whatever he is comes on that fake commercial bragging they have paid off the loan when they didn’t.
No government motors car for me.
WE BETTER CALL THE COPS Over-lending on a loan to achieve quick initial repayment (and thus inflate the loan's perceived value), in the private economy, is called fraud.
COUPLE CLUES (1) GM unveils ad's seeking to re-engage disaffected Americans under the pretense of its supposedly paid-in-full-with-interest loan. (2) Ohaha Toadie Larry Summers is touting "success." (3) The Reserve Primary Fund's recent failure may just be a diversion and scapegoating in a broad "War on Wall Street" that Obama, Soros and FDIC's Sheila Bair, among others, are engaged in right now, to get complete control of our financial system.
BIG QUESTION---WHERE IS THE $52 BILLION PRINCIPAL? As stephenjohnbanker posted: GM got a total of $52 billion from the US government---$6.7 billion of that was a loan. GM merely paid back the INTEREST. What about the $52 billion PRINCIPAL?
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 Armys 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 --- 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.Treasury Dept officials have acknowledged that most of the $23 billion TARP 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. TARP 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.
(REFERENCE The father of the money market mutual fund -- investor Bruce Bent -- was charged with fraud by US regulators over accusations he deceived investors into believing his flagship fund was safe before it "broke the buck" last year. The civil charges against the veteran money manager, his son and their investment company come eight months after the Reserve Primary Fund, loaded with Lehman Brothers debt, halted redemptions after the investment bank declared bankruptcy, sparking a run on money-market funds. The fund's net asset value fell below $1 after Lehman's bankruptcy last September, meaning that investors who thought their funds were safe had lost money. The fund is being liquidated and its collapse has spurred numerous lawsuits. Its demise has been a stunning turn for Bent, who regulators called "the public face" of the fund and "a longtime advocate of the safety and stability of money market funds." The Reserve Primary Fund's failure has been a tragedy for investors and the Bents, said Peter Crane, president of Crane Data and publisher of Money Fund Intelligence. (Excerpt) Read more at reuters.com )
NOTE WELL In addition to his role as White House Chief of Staff, Emanuel is heavily involved in decisions made by the US Treasury.
Behind The Real Size of the Wall Street Bailout (magazine details $14 trillion bailout)
Mother Jones | Dec. 21, 2009 / FR Posted Jan 04, 2010 by E. Pluribus Unum
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.
The price tag for the Wall Street bailout is often put at $700 billionthe size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:
Treasury Department bailout programs (controlled by Rahm Emanuel)
Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokeragesas much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].
--SNIP--- long read
Federal Reserve bailout programs
Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.
Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.
Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.
Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.
--SNIP--- long read
Added this to Monster Ping ...
And Obama-nomics link list ...
Along with ...
Earth Day 0-bamas [and Thrifty too]
Census hiring blitz of 750,000 to cut jobless rate, offer boost to Obama (Big Lie Coming)
O’s Wall St. Rx: This ‘fix’ won’t fly
GOP ramps up attacks on SEC over porn surfing (Same “Independent” SEC that takes orders from Obama)
FRAUD! ON TAXPAYER COMPUTERS...
BARNEY FRANK BLAMES GOP...
One-Fourth of Nonprofits Are to Lose Tax Breaks
Alert! GM Lies in New Ad on Its Repayment of Bailout Money
Where did it say that the payback had to come from earnings???
Thanks Liz. Very, very interesting.