Posted on 04/21/2010 5:32:15 PM PDT by uncommonsense
This is the transcript from a portion of the April 21, 2010 interview from Neil Cavuto, SVP of Business News, with Neil Barofsky, Treasury Special Inspector General of TARP on mortgage modifications, regulations, and GM's announcement on "repaying" their loan:
Neil: Today's announcement by general motors that it's paid back its tarp loan in full, in full, is a huge accomplishment. Is it?
Barofsky: Well, it's good news they're paying back the loan. The one thing a lot of people overlook with this is where they got the money to pay the loan. It isn't from earnings. They didn't earn and extra 4 1/2 billion dollars, it's another pool of tarp money. So there's money in escrow.
Neil: Wait a minute, they paid off a credit line with another credit line?
Barofsky: Exactly. So.
Neil: Why are we bragging about that?
Barofsky: Well, it's somewhat good. It's good in that we...
Neil: You paid off one credit ..
Barofsky: Absolutely. They already have the money in the escrow account, so it loser the total they owe to the government, so that's somewhat good news. But I don't think we should exaggerate it. It's just other tarp money.
Neil: All the bank rescues and everything else, virtually all the guys gave the money back, gm, despite the credit line shift, gave the money back.
Barofsky: They've not given the money back.
Neil: You're right.
Barofsky: But I am saying if it was so onerous a year ago that they needed all this money, with no hope of surviving, they didn't get all this money, and a year or so later they're giving back the money, maybe all of us didn't need to give them money. That's a -- that raises a issue for a final question but we were at the abyss when this happened and the tarp and other parts of the -- that addressed the financial crisis, by those who were at the time thought the entire economy was headed off a cliff and this helped bring it back. It is good news a lot of the money's coming back but we have more work today.
Neil: Neil barofsky, thank you very much.
Barofsky: Thank you, neil.
actually just heard a GM radio ad saying they “paid off their loan , and 5 years early”...
Paying one credit card with another credit card. Didn’t reduce the debt, did it?
I don’t believe them...
Yes, it’s been repeated ad neaseum all day long on the news flashes on the radio.
Rush said they paid 13% of it back.
Both "credit lines" are taxpayer money if I understand this correctly. 0bamaFraud!
I got an email from GM saying the same thing. Total BS
The list, ping
So if I’m reading this correctly GM did not use all the TARP money to begin with. It appears they using another line of credit to payoff the TARP money they did use and returned what TARP they did not use. I stand by to be corrected.
Did pay, didn’t pay....whatever. All I know is I will never buy a UAW car.
I don’t care if GM paid back 100% of the loan, GM is off my list forever..
How about paying back all the investors who were scalped in preference to the unions and contrary to standard bankruptcy practice?
My understanding is that the funds did not come from operating cash flow, or from non-government sources. If I’m correct then this is just another pile of bullshit that Joe Biden was sent out to put a happy face on.
Yes and it turns out it is exactly the same with the republicans. Both are dirty on all of this. Don’t anyone kid themselves. And don’t anyone take the heat off the republicans as if they are some sort of angels. The fact that they have no desire to change anything...The fact that they want to sweep everything under the rug is all the proof you need.
I will also say this. If the GOP does not get on the ball in going after all this fraud, and the people who are committing it then the GOP is going to lose any gain they have gotten else where. The public is mad about all the corruption, and they are not taking kindly to anyone who turns a blind eye to it. The democrats are getting that much(even if it is mostly a show they are putting on). The Republicans better wake up or they are going to look like corrupt idiots. It is your choice GOP.
Now you see it ,now you dont>
I don’t mean to rude, I know GM-ers, but this is a shell game and what about their 12 Billion in retirement Liabilities that never got exorcised via a non traditional bankruptcy and this also screams that their is no real Revenue that translates into Profit. Tell me where my analysis is wrong here.
Let me just add that if the GOP does not get on the subject of going after the corrupt, and there corruption that they are going be labeled the party of corruption- instead of the democrats.
“...actually just heard a GM radio ad saying they “paid off their loan , and 5 years early”
Lesee now...a government car building agency lying about their financial affairs!? Who’d a thunk they’d morphed so quickly!! I’ll bet some shareholders could have fun with this!!
bump to that
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.