Outrage– GM Paid Back Bailout Money By Dipping Into Separate Bailout Pot (Video)
Posted by Jim Hoft on Friday, April 23, 2010, 12:30 PM
Oh, this is not good… Especially after General Motors started running those big TV ads this week bragging about how they paid their bailout money back ahead of schedule.
GM pays back bailout money from a separate pot of taxpayer bailout money.
The 6.7 billion General Motors paid back this week came from a different pot of bailout money.
Taxpayers may also be forced to pay for the car manufacturer’s union pension shortfall.
FOX News reported:
A top Senate Republican on Thursday accused the Obama administration of misleading taxpayers about General Motors’ loan repayment, saying the struggling auto giant was only able to repay its bailout money by dipping into a separate pot of bailout money.
Sen. Chuck Grassley’s charge was backed up by the inspector general for the bailout — also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.
“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.
GM announced Wednesday that it had paid back the $8.1 billion in loans it received from the U.S. and Canadian governments. Of that, $6.7 billion went to the U.S. treasury.
But Grassley said in his letter that a Securities and Exchange Commission form filed by GM showed that $6.7 billion of the tens of billions the company received was sitting in an escrow account and available to be used for repayment. He called on Geithner to provide more information about why the company was allowed to use bailout money to repay bailout money, and how much of the remaining escrow money GM would be allowed to keep.
By the way… Didn’t Obama appoint the current GM CEO?
It figures.
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Joe commented:
It just seems that it is a futile hope that any of the people involved with Obama and his band of merrymen can be honest. This is disgusting and frankly, due to the bailout, I will never buy another GM product or Chrysler either, for that matter.
down with dems commented:
Go transfer all your credit card balances to different credit cards and brag about how you paid your bills off in full!!!
How much money did GM spend to mail out letters and buy tv ad time in order to do the equivalent of the above??? And whose money did they use to do it?
(Seriously though, don’t run a cc balance in the first place.)
Stuart commented:
I saw the TV ads and figured it was B.S.
Government Motors=government lies.
Imagine how trustworthy their warrantees and assurances of quality are. LOL.
bg commented:
++
been telling & posting about this guy, who’s connected to this guy, who’s connected to GM (also Citigroup), who’s connected to Obama for months
on end now..
btw, some of the links / videos may no longer be
available, a few more links @ link here (pardon
any repeats)..
Obama: “Remaking America”
(more info)
[Such transactions can prove hugely profitable for a buyer, depending largely on financing costs and the buyer's ability to turn around the business. Under the terms of the transaction, Platinum is expected to invest no more than $750 million, according to the person familiar with the deal. GM would provide the balance in financing. Those financing commitments may or may not be drawn upon in the future, depending on how Delphi performs. The terms of the GM loans couldn't be learned. As part of the deal, GM is buying back four Delphi plants and Delphi's Saginaw, Mich., global steering division. In addition, it's providing a $250 million loan to fund Delphi's operations while it remains in Chapter 11.]
Obama’s Harvard Sponsor is linked to GM
(via Dodge & Cox Stock Fund & Citigroup)..
ps:
Is Obama Tampering With CitiGroup
and just for the heck of it..
Prince Alwaleed: I Would Like To Thank US Govt For Saving My Butt
==
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WSG commented:
Imagine if we had news organizations that were free from government influence. That we find these things out from blogs is good for blogs, bad for us. If anyone had any doubt that GM is being run by the OA, the commercial with the CEO trying to deceive the public as to what has occurred should remove all doubt. It is the same sort of superficial obfuscation that is now common and does not hold up to even light scrutiny. Isn’t it lucky that it won’t be held up to any?
Now that Obamacare has been passed, all of the revelations that weren’t important before passage are now brought forward. In a month, will it be financial reform? Immigration? CapNCrunch? Is it too much to ask that the MSM actually try to try to keep the government honest no matter who is currently in control? Why bother mentioning them in the Constitution? They don’t need protection to perform like this.
Guido commented:
What is it about Liz that makes her appear so HOT to me? Maybe her glasses…hhmmm. Woof!
mark commented:
Well I knew it was BS before because it’s Obama motors and nothing is what it seems. But this isn’t funny. It’s called fraud and if you ran a public company and did this you’d be investigated by the SEC. But there are two problems. One, Obama owns GM and they are using Gov’t accounting rules vs. SEC accounting rules. (meaning none) And two, the SEC is too busy watching porn all day to give a rip. The corruption knows no bounds.
Kevin P commented:
And we’re supposed to be worried about Wall Street???
This ObaMao administration and its cronies are like someone coming to your door – and saying “There’s been an accident down the street and they need your help.” While you run to see the “non-accident” – the person who was at your door has his cronies come in and clean your house out.
Melvin Winter commented:
Maybe this should be what the new GM commercial looks like: http://www.youtube.com/user/Optoons#p/u/45/kkYInHcZ0pI
Maria commented:
Contact GM about their false advertising:
http://www.gm.com/utilities/contact_us/contact.jsp?deep=form&advertising
bertogem commented:
Yes, they think we’re stupid and will believe anything we’re told.
pst314 commented:
“nothing more than an elaborate TARP money shuffle”
This just begs for somebody to do a “TARP Money Shuffle” music video. (With apologies to the Chicago Bears’ Superbowl Shuffle.)
Don Rodrigo commented:
When I first heard that GM had “paid back” their loan, I had two reactions:
1) Huh? $52 billion? Already? How’s that possible?
2) If they indeed “paid back their loan,” are they no longer Government Motors?
As we see, they paid back some money (WAAAYYYYY short of $52 bill) — and not really, since it didn’t come from profits or a commercial bank loan, but from me and you through different channels — so how can that be a full repayment? I mean, WTF?
seven commented:
So I see one poster remember the 52 billion other dollars which was actually 61.5 billion dollars?
And their current report is false because it doesn’t include losses derived from liabilities for pension shortfalls. I suspect there is also some understatement of short term liabilities (slow pay on invoices) In footnotes to the financial reports do they report contingent liabilities due to litigation from cancelled dealers? These reports are just like Enron reported.
Ted commented:
One of the two official car companies of the US “National Socialist” party.
Heil.
rcl commented:
Did you see that simultaneous with the lying ad GM has cut all ties with the Detroit based ad agency they’ve used for 91 years. Now all ads, including the Big Lie, will be coming from a Paris based ad company.
Perfect Democrat plan; f*&^ Amerika, kiss Euro ass.
Scott Wiggins commented:
Obama and his band of merry communists couldn’t run a dimestore…They are all academics and government hacks…Saying they can run GM is like saying they are going to going to build a spaceship for travel to Pluto.
avery commented:
I’Mboycott GM and Ge.
Robert commented:
I wanna escrow account too.
It’s my right to have one.
Summer commented:
Thanks GP for posting this clip. Right at the very beginning I had noticed my congresscritter was on and went over to the FBN video channel and found the previous clip. Sure enough, it was him (Gary Peter (D) MI-9) claiming that not only was Senator Grassley wrong, so was the Inspector General. If it wasn’t for your blog, I would have never seen this. Excellent video feed fed to my team over at rockyworksforus.com
Andreas K. commented:
I think you all should go to GM and simply take what is yours.
Desks, chairs, stuff like that.
YOU paid for it after all.
jonyjoe101 commented:
A company that hasn’t made a profit in years all of a sudden has money to pay off a debt?
In the real world it never works like that. Didn’t work like that this time either.
Allen commented:
They only “paid back” 10% of bailout. Wall Street Journal corrected GM President’s op-ed. Its all a lie. http://www.futureofcapitalism.com/2010/04/read-it-here-first-46
Scott Wiggins commented:
Funny how GM reported a 4.3 billion dollar loss for July-Dec 2009 after emerging from bankruptcy…Yet, they claim to have made enough money to give 8 billion back to the Feds??? Obama-math…The same one used for healthscare…
brooklyn commented:
Stunning to consider a US CEO of a Major US Company – Corporation, would foolishly appear on an ad, presenting a big BOLD FACED LIE to the American Public.
It is another swindle, simply designed because GM is on the cusp of flopping yet again, the bailouts didn’t work – thus they have to present the idea it paid it off.
The poor reputation, connected to Democrats, has crushed the image of the UNION run GM.
This swindle is going to make it worse…
Like Fanny and Freddie, look for them to be needing more taxpayer money in the future.\
DNC Titanic.
Greg commented:
The GM dishonesty has been well covered above…. All I can add is that three weeks ago I bought a non GM product for the first time, a 2011 Toyota sienna and am very pleased
Koblog commented:
It’s ridiculous on its face: how can GM — which is still losing almost $1 billion per month — pretend to “pay back” anything?
It’s still bankrupt. It’s not, repeat not, making a profit.
charles farnsworth III commented:
I like turtles.
edward przydzial commented:
gm paid back 13% of money they owed… the rest from tax payers. how dare them to put a commercial on tv with the president of the company LYING between his teeth. the obamatrons might be swallowing this load buy the folks who understand this ponzi scheme know better. mr. barack hussein obama is the biggest liar in washington and what makes us think he’d be any different after all he is doing to force his agenda down our throats… from cash for suckers to the healthcare fiasco this regime just keeps pushing forward telling the american people “i can’t hear you…” i can’t wait to see obama gone what a loser.
http://obamatrons.blogspot.com
Ashley Danielle commented:
134 billion in GM debt purged! Neil Barofsky TARP
http://www.youtube.com/watch?v=5w_Ocee4zms