Skip to comments.Grassley Slams GM, Administration Over Loans Repaid With Bailout Money
Posted on 04/22/2010 3:36:54 PM PDT by HD1200
"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner. The bottom line seems to be that the TARP loans were 'repaid' with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials," he wrote.
(Excerpt) Read more at foxnews.com ...
Hell, yeah! Did you think they had positive cash flow?
If it seems to good to be true, it probably is. I wonder how Obama would respond if this company were still in private hands?
The President of GM was broadcasting a new commercial on radio here in California today that they “fully paid their loans off with interest”, hired new engineers and are developing the cars of the future.
The President of GM would not lie to us would he?
Grassley needs to scream his findings, because he’s right.
They really are very slimy.
The list, ping
They ran a slick TV ad boasting the same last night. I saw it on Fox.
Somebody should sue to stop the advert. It is miss leading. They are still loosing money. There is a huge payment coming on their retirement obligations. When and if they are sold to the public...the USG will not get it’s money back. This is all propaganda from the Regime to convince people that the bailout was a great and wonderfull thing.
A bond holder should sue.
Too late see,
the NARRATIVE has been written and has gone around the world twice before the truth even wakes up.
What`s the narrative?
” GM has repayed ALL loans back to the govt. “
They can lie and they can scam and they can fudge the numbers but reality will catch up and the whole s*** pile will hit the fan someday -— soon!!!
Absolutely pathetic, and so we taxpayers paid for the ad in the NY times to celebrate gubmint motors paying back loans to the govt via funds from the taxpayers! OH my, it’s time for me to start drinking!
This kind of socialist Newspeak is what turned the soviet block into a bunch of hopeless alcholics.
They had the same ad in the Edmonton Journal too so I suspect It was all over Canada and the US
I received this notice by email a few days ago.
A lie goes round the world before the truth can get its pants on.
Truth needs to hurry up.
The misinformation and disinformation from the the Evil Empire minions controlling Washington is truly terrifying. As Glenn said today, they have become so brazen they don't even try to hide it anymore.
When I was a kid, my entire family drove GM. My first car was a 76 Cutlass Supreme. I have restored a 68 and 69 Pontiac Lemans.
I will never buy another GM product. I drive a Ford.
Reporters need to go after Obama on this - it is a blatant lie and he should be called on the carpet. Don’t bet on it.
"They are still loosing money. There is a huge payment coming on their retirement obligations."
Yep, using one credit card to pay another is not a good business model.
But, then, when did unions ever care about business?
According to CNN.com’s bailout tracker, the federal government has poured $49.9 billion into GM:
So how could the recent “repayment”, or shuffling of dollars, have possibly repaid all the bailout money? It couldn’t have repaid it all and GM could be using semantic gimmickry along with money shuffling: perhaps in technical financial terms the other bailout money wasn’t a “loan” but some other kind of investment in GM. So maybe they did pay back their federal “loans” even though they’ve only paid back less than 20% of the total bailout funding (and that’s if this is not just shuffling money from one TARP account to another.)
I’m a professional investor and trader, and when GM eventually goes public I wouldn’t invest a dime in that company at any stock price. The UAW is way too militant, socialist, and unreasonable about total hourly pay and benefits and will not allow the owners of GM to make any kind of reasonable return on investment. GM’s management certainly made a lot of mistakes. Buying Saab instead of investing that cash in product research and development was probably their biggest mistake. What really killed GM in the end was management’s refusal to reduce costs and headcount in 2007 and 2008, the soaring cost of the UAW’s retiree health care benefits, and the UAW’s reluctance to make serious concessions to reduce that massive health care cost to GM.
Have y’all heard the GM radio ad featuring “Karen” in which she damn nears has an orgasm describing how much she loves her Chevy Impala?
Friend of mine rented a Impala to drive to Miami and back. 1200 miles round trip. He said the Impala was the worst car he has ever driven. Hr gave the car rental place a long list of stuff wrong with the car when he turned it in.
No GM POS for me.
I predict that GM will become a quagmire for the administration and that company will be lucky just to not lose money in a good economy. I don’t know how they’ll ever get an IPO of the “New GM” off the ground. They might be able to talk Wall Street into a big marketing campaign to sell that trash stock to retail investors, but pro investors are not going to buy it except in limited amounts at very low prices that give them a big chunk of equity with a limited investment. I wouldn’t put a dime into that company until it proves it can make a reasonable ROI and then not be attacked by the UAW in the next contract negotiations for earning a profit.
Well I’ve rented several GM cars and all of them drove just fine. In fact, the last one I rented was an Olds Cutlass out of the Las Vegas airport and that Cutlass is still the fastest car I’ve ever driven (...haven’t stepped into a Maserati yet...lol). I think it had about a 4 liter, 24-valve DOHC V6 engine in it with fairly good aerodynamics, and that car was fast. I had to watch it that I didn’t start driving over 80 mph on I-15 in eastern California. So I think most of GM’s products are OK. Their problem is their total cost of production is way above the Asian car-makers and even well above Ford’s production costs. Their union retiree health care costs are outrageously high and they’ll never be able to turn a profit consistently until those UAW retirees start paying much more for their health care while GM pays much less.
There should be a full page ad running that says
“LIARS, YOU PAID WITH BAILOUT MONEY BECAUSE YOU ARE IN THE TANK WITH OBAMA.”
“Karen” was probably originally from E. Germany, and the bitch only had the Trabant as a reference point. Impalas are truly awful cars.
Saw that on FOX this morning. I knew it was a bunch of crap.
Probably ‘manufactured’ on a Friday or a Monday. Tho....through the years when I’ve owned a ‘union made’ car....I think ‘hump days’ are ‘happy hours’, too.
What difference does it make where the payoff money came from as long as it is returned to the Treasury Department. I don’t see what all of the yowling is about.
Because the money they gave the Treasury came from the Treasury you dolt. In simple terms, which I’m sure are best for you, they took it out of one pocket and put it in the other and called it ‘payback’.
The yowling isn't abour the repayment its about the characterization by GM and the regime that this was a major achievement for GM. The have tried to create the impression that GM used its own money and is doing quite well, when actually they are still losing taxpayer's money.
The SEC should be investigating GM and Obama.
"...The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials," he wrote.
It’s like the old game of Three Card Monty. I would not get into a poker game with any of the people in the “auto task force.” They might buy another matching deck of cards and walk into the game with 3 aces up their sleeve.
Ijust saw a long, slick TV ad with the GM top dog crowing about having paid back the loans.
If it’s true that they just shuffled some money around, then GM is even more contemptible than it already was.
We're square, right?
DON’T BUY GM (GOVERNMENT MOTORS) CARS!!!
I will never buy a GM, as long as they are Gov and Union owned
I’ve seen the tv ad repeatedly and heard the same on the radio today during Rush or Hannity...
agree, the ad should be stopped, it’s a lie!
Oh, I see the bull horn one above.
Because they paid back TAXPAYER MONEY WITH TAXPAYER MONEY, get it?
I thought the Troubled Asset Relief Program money was to go to banks and other financial institutions to cover the housing bubble problem. What is General Motors doing with ANY of it?
He certainly appears to be a prostitute, useful idiot, and sadly a fool......in his absurd proclamations regarding his "SUCCESSFUL" loan payoffs.
I do recognize his ego............
Hey Whitacre.....where did you get the cash to payoff those loans.....come on...admit it...because we all know..... How could you be so.....so....._______________?
How the heck can the Obama lovers still be touting this as a “success” for his administration???!