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Grassley: GM Uses ‘TARP Money Shuffle’ to Pay Loans

texmaster

texmaster

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A top Republican says General Motors’ announcement this week that it will repay its federal loans early is “nothing more than an elaborate TARP money shuffle.”

In a letter to Treasury Secretary Tim Geithner, Sen. Charles Grassley of Iowa fumes that the source of the funds for the $4.7 billion repayment is not GM earnings, but rather a Treasury escrow account. He chides the company and the administration for suggesting in recent statements that the money is coming from GM earnings.

Grassley writes that GM’s early repayment of the federal loan is aimed at diverting attention from another uncomfortable issue – the big break the car company would get on a proposed tax to recoup TARP losses. GM is expected to generate some of the biggest losses in the TARP program, but it won’t have to pay any money under the so-called TARP tax the Obama administration wants to impose on large financial institutions.

Treasury and GM officials don’t dispute that the money to repay the loan is coming from TARP funds. But they said that’s been clearly disclosed.

Grassley: GM Uses ‘TARP Money Shuffle’ to Pay Loans - Washington Wire - WSJ


So not only did GM not repay the full loan (only 40 billion short) the money they did use to pay back the part that would cost them interest on they use MORE taxpayer money!!!
 
A top Republican says General Motors’ announcement this week that it will repay its federal loans early is “nothing more than an elaborate TARP money shuffle.”
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Well if a Republican said it, it must be true. Sorry bud I've looked around a couple of sites and can't find another story like this, were it true the press would have a field day. So until it appears on a credible news site, since I don't think Wall street Journal blogs is one, than we can talk about this stuff.
 
Jetboogieman said:
Well if a Republican said it, it must be true. Sorry bud I've looked around a couple of sites and can't find another story like this, were it true the press would have a field day. So until it appears on a credible news site, since I don't think Wall street Journal blogs is one, than we can talk about this stuff.
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Gee, I can't imagine why the same jurassic media that totally ignored obama's lack of eligibility doesn't put more emphasis on a story that makes him look bad.
Here's abc:
Grassley Questions GM Repayment - The Note
Or, if you prefer a real media out let, here's FOX:
FOXNews.com - Grassley Slams GM, Administration Over Loans Repaid With Bailout Money
Or, you can just google "tarp money shuffle" and you'll get 498,000 results. But, I guess doing some research on your own is harder than to just dismiss the truth all together.
 
keymanjim said:
Gee, I can't imagine why the same jurassic media that totally ignored obama's lack of eligibility doesn't put more emphasis on a story that makes him look bad.
Here's abc:
Grassley Questions GM Repayment - The Note
Or, if you prefer a real media out let, here's FOX:
FOXNews.com - Grassley Slams GM, Administration Over Loans Repaid With Bailout Money
Or, you can just google "tarp money shuffle" and you'll get 498,000 results. But, I guess doing some research on your own is harder than to just dismiss the truth all together.
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Oh, yeah great. what I meant to say is, I want proof. So far the only thing you have to stand on, is a top republican says so :shock: Shocker that, shocked the Republicans would accuse the Obama administration of wrong doing when positive news comes out :doh ain't that some **** :roll:
 
keymanjim said:
Or, if you prefer a real media out let, here's FOX:
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You made my sides hurt, I laughed so much at that.

But, I guess doing some research on your own is harder than to just dismiss the truth all together.
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Hey, the right wing invented the "dismiss the source as biased" tactic.

In any event, I don't doubt the truth of this letter, but I wonder if the whole story has been told by this blog entry.
 
What kind of "proof" do you want?
Grassley made a statement. What did he say that was wrong?
 
Jetboogieman said:
:shock:

Whether the statement is true...
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The way this works you see is, if you don't agree with something that's out in the media or public stating "X", then it's incumbent upon you to show that it's incorrect by providing proof, not the other way around. There's no less than 3 sources provided that support the OP statement. Simple dismissal based on what you deem as acceptable "proof" or "evidence" is irrelevant. No one can stop you from plugging your ears and yelling "LALALALA!!!" at the top of your lungs if you want to.

Either debunk it or become irrelevant in this thread. :2wave:
 
texmaster said:
Time to adjust your tin foil hat. Dont want that vast right winged conspiracy to get you! :rofl
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Now it's a conspiracy to ask whether something a POLITICIAN said is true? :roll:
 
misterman said:
Now it's a conspiracy to ask whether something a POLITICIAN said is true? :roll:
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You could always try to prove them wrong.
Did you read his statement? What exactly did he say that was incorrect?
Did the pay back come from GM's profits or did they come from a different bailout fund?
GM posted a $4,300,000,000 LOSS in the last 6 months. I doubt the money came from profits.
 
keymanjim said:
You could always try to prove them wrong.
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I never said they were wrong.

This is hilarious - suddenly a politician must be trusted without question.

Did you read his statement? What exactly did he say that was incorrect?
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I have no idea if any of it is incorrect. Or correct.
 
texmaster said:
Asking and denying are two different things.
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I haven't denied anything. I don't think anyone on this thread has, though I can't speak for them.
 
my initial inclination was to question the veracity of grassley's statement
after all, he is now campaigning on the benefits of the health care reform bill - the one he opposed

but it does appear his concerns about the source of the "repayment" are sound:
the Inspector General for TARP, in its quarterly report to congress (04/20/10) @ page 115:
http://www.sigtarp.gov/reports/congress/2010/April2010_Quarterly_Report_to_Congress.pdf

[emphasis added below]
"Debt Repayments

"GM has made several payments on its outstanding loan to Treasury and expects to pay it in full by June 30, 2010. The source of the funds for these quarterly payments will be other TARP funds currently held in an escrow account."
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exhibit 99.1 of the form 8K filed by GM with the SEC (11/16/09); GM admits that the source of funds for GM’s debt repayments was a multi-billion dollar escrow account at Treasury—not from earnings:

General Motors Co - FORM 8-K - EX-99.1 - NEWS RELEASE DATED NOVEMBER 16, 2009 AND FINANCIAL STATEMENTS - November 19, 2009

"As of September 30, 2009, cash and marketable securities totaled $42.6 billion. Included in this amount was $17.4 billion held in escrowed funds from the United States Treasury (UST) and Export Development Canada (EDC), with $8.1 billion of this amount allocable for future repayments of the UST and EDC loans, $2.8 billion for the recently completed Delphi settlement and $900 million for healthcare in Canada, leaving a remaining escrow cash balance of $5.6 billion.
....
"GM plans to repay the United States, Canadian and Ontario government loans in quarterly installments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December ($1.0 billion to the UST and $192 million to the EDC), followed by quarterly payments. Any escrowed funds available as of June 30, 2010 would be used to repay the UST and EDC loans unless the escrowed funds were extended one year by the UST. Any balance of funds would be released to GM after the repayment of the UST and EDC loans."
Click to expand...
 
If you look at the article, GM doesn't deny it. They just say it was publicly disclosed.
 
misterman said:
If you look at the article, GM doesn't deny it. They just say it was publicly disclosed.
Click to expand...

but what is not explained is why the GM grandstanding?
any ideas about that?


i think it was Obama driven to push an agenda painting a positive picture about the fortunes of the economy. but then i tend to be overly skeptical
 
texmaster said:
and you base this suspicion on what?
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It's not a suspicion. I just wondered it. I wasn't claiming that the whole story wasn't told, just wondering if it was. Do you see the difference? If I said "I'll bet the whole story isn't being told" that would be different.
 
justabubba said:
but what is not explained is why the GM grandstanding?
any ideas about that?
Click to expand...

Well, grandstanding.

i think it was Obama driven to push an agenda painting a positive picture about the fortunes of the economy. but then i tend to be overly skeptical
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I think it was GM driven to push an agenda painting a positive picture about the fortunes of GM.
 
misterman said:
Well, grandstanding.



I think it was GM driven to push an agenda painting a positive picture about the fortunes of GM.
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since GM is supposed to offer IPO's for the 'new GM' beginning july 10, maybe this was their attempt to piss on our leg and tell us it is raining
 
texmaster said:
A top Republican says General Motors’ announcement this week that it will repay its federal loans early is “nothing more than an elaborate TARP money shuffle.”

In a letter to Treasury Secretary Tim Geithner, Sen. Charles Grassley of Iowa fumes that the source of the funds for the $4.7 billion repayment is not GM earnings, but rather a Treasury escrow account. He chides the company and the administration for suggesting in recent statements that the money is coming from GM earnings.

Grassley writes that GM’s early repayment of the federal loan is aimed at diverting attention from another uncomfortable issue – the big break the car company would get on a proposed tax to recoup TARP losses. GM is expected to generate some of the biggest losses in the TARP program, but it won’t have to pay any money under the so-called TARP tax the Obama administration wants to impose on large financial institutions.

Treasury and GM officials don’t dispute that the money to repay the loan is coming from TARP funds. But they said that’s been clearly disclosed.

Grassley: GM Uses ‘TARP Money Shuffle’ to Pay Loans - Washington Wire - WSJ


So not only did GM not repay the full loan (only 40 billion short) the money they did use to pay back the part that would cost them interest on they use MORE taxpayer money!!!
Click to expand...

People always only quote one side of the story....from the linked blog:

A Treasury spokesman said, “It’s been public knowledge that GM would use these funds to repay the loan if it did not otherwise need them for expenses.”He added: “The important fact is that GM has determined that it does not need the funds to pay expenses and can repay the loan early. That is a positive sign for the company, and a great development for the taxpayer.”
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The money was GM's, held in escrow. GM was to use it if needed, and if not, use it to pay off the loans. It did not need to use the money for expenses, sales are climbing, it used the money to pay off the loans. I am not sure what the story here is, other than a politician spinning things.
 
texmaster said:
A top Republican says General Motors’ announcement this week that it will repay its federal loans early is “nothing more than an elaborate TARP money shuffle.”

In a letter to Treasury Secretary Tim Geithner, Sen. Charles Grassley of Iowa fumes that the source of the funds for the $4.7 billion repayment is not GM earnings, but rather a Treasury escrow account. He chides the company and the administration for suggesting in recent statements that the money is coming from GM earnings.

Grassley writes that GM’s early repayment of the federal loan is aimed at diverting attention from another uncomfortable issue – the big break the car company would get on a proposed tax to recoup TARP losses. GM is expected to generate some of the biggest losses in the TARP program, but it won’t have to pay any money under the so-called TARP tax the Obama administration wants to impose on large financial institutions.

Treasury and GM officials don’t dispute that the money to repay the loan is coming from TARP funds. But they said that’s been clearly disclosed.

Grassley: GM Uses ‘TARP Money Shuffle’ to Pay Loans - Washington Wire - WSJ


So not only did GM not repay the full loan (only 40 billion short) the money they did use to pay back the part that would cost them interest on they use MORE taxpayer money!!!
Click to expand...

Doesn't surprise me. The government panders to big corporation. They have no problem taking our money and giving it to the corporations and banks which acted improperly and had suffered for their actions to remove from them the consequence of those actions at our expense. None of the "stimulus" has been aimed at the middle class. There were token gestures here and there; but that was about it. The real concern was Wallstreet and how to make it better. Pandering to the aristocracy by robbing the people.
 
misterman said:
It's not a suspicion. I just wondered it.
Click to expand...

LOL Oh please.

I wasn't claiming that the whole story wasn't told, just wondering if it was. Do you see the difference? If I said "I'll bet the whole story isn't being told" that would be different.
Click to expand...

Wow. you just couldn't be honest enough to admit you doubt it because a republican said it.
 
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