Reps Issa & Jordan Rip GM CEO For Coming "Dangerously Close to Committing Fraud" In New TV Ad
Posted by Jim Hoft on Friday, April 30, 2010, 12:12 PM
Representatives Darrell Issa of (R-CA) and Jim Jordan (R-OH) sent a blistering letter to General Motors CEO Ed Whitacre this week accusing the company of misleading the American public. The new GM television ad suggests GM repaid its taxpayer-funded loan with the company’s own earnings when it used separate bailout money to repay the $4.7 billion balance of the original $7.1 billion government loan.
GM was only able to pay back their bailout money early by dipping into a separate pot of taxpayer bailout money.
FOX News reported:
The billions General Motors paid back this month came from a different pot of bailout money. The ads also hide the fact that US taxpayers may also be forced to pay for the car manufacturer’s union pension shortfall.
Today Republican Reps. Darrell Issa of California and Jim Jordan of Ohio accused GM CEO Whitacre of coming dangerously close to committing fraud.
The Politico reported:
Republican Reps. Darrell Issa of California and Jim Jordan of Ohio have seen General Motors’ new television ad, a 60-second spot featuring Chairman and CEO Ed Whitacre telling viewers that “we have repaid our government loan in full, with interest, five years ahead of the original schedule.”
They aren’t impressed.
Issa, ranking member on the House Committee on Oversight and Government Reform, and Jordan, ranking member on the Domestic Policy Subcommittee, sent Whitacre a blistering letter Thursday accusing the automaker of running “false advertisements” that “constitute a lie to the American people.”
Issa and Jordan say the ad is misleading because it suggests GM repaid its taxpayer-funded loan with the company’s own earnings. In reality, GM used separate taxpayer money from an escrow account worth $17.4 billion – set up by the Treasury Department upon taking a 61 percent majority stake in the company – to repay the $4.7 billion balance of the original $7.1 billion loan.
“We are concerned that GM, under your leadership, has come dangerously close to committing fraud, and that you might have colluded with the United States Treasury to deceive the American public,” Issa and Jordan wrote. “Your false statements may expose GM to millions of dollars in damages, further reducing the value of the taxpayer-owned company. The American people, as the majority shareholders of GM, have a right to know the truth behind the cost of the GM bailout and GM’s genuine financial condition.”
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Published May 24, 2012 at 8:46 pm - 86 Comments
averagemelon commented:
It was probably Obama’s idea. This kind of thing runs in his veins when it comes to not being completely truthful to the American people.
How the heck do you pay off your debt when you don’t sell any cars, guys?
BigAlSouth commented:
No, it’s not fraud. It is a case of lyin’ while smilin’ though.
Hey, I think I’ll wander over to the Ford Dealership and check out a non-government automobile.
cvxvxcv commented:
False advertising!
GM is is a Fraud just like Obama!
Robert commented:
So if GM has paid us off in full, 5 years early,
then there is no reason why we should have
to subsidize them or their pensions any more.
Ebayer commented:
Ed Whitacre was appointed to GM by the Obama administration and the administration approved the ad.
You think the DOJ is going to prosecute GM or Ed Whiticare for lying and willfully misleading the public?
B Davis commented:
I am pretty sure the idea was Obama’s – remember, Obama owns GM, and last I looked, the owner makes the rules.
Also, look at the timing of the ad campaign – starting just as Obama launched his takeover of the financial industry, just as the republicans started their attack based on the dangers of bailouts and government takeovers – this was designed to counter the republican argument by lying to the public with a PR campaign fraudulently touting the success of bailouts and government takeovers
Ellyl commented:
In my opinion this is considered a 2nd (mortgage/ loan), and is added to the total amount borrowed from taxpayers.
It is very deceptive to give the impression that any paydown of the original bailout was due to company profit.
I’m glad that some of the Repub. Reps. are calling them on it. We all should be!
It’s slimy and oh so unclassy.
Seven commented:
Obama wants to lie. Lies are ok for the left if they enhance the agenda.
Now my point on the LIAR. I googled and pulled up the FIAT corporate web site. According to Fiat, they don’t know they bought chrysler. It is not mentioned as one of their brands nor a part of teir revenues. (Must have had their loan turned down)
If the Chrysler deal is off with fit, where are the Chrysler annual reports?
Kevin P commented:
B. Davis #6 – DING DING DING DING!!! Nailed it!
wanumba commented:
averagemelon mentioned it – no one is selling cars, the least of them GM, so the immediate reaction when we heard the news was a disbelieving, “Right, HOW?” Now, we know.
The auto dealer lots are EMPTY. We have a GM and FORD right next to each other. They are doing the same thing – one line of show cars parked along the highway, and NOTHING behind them. NO inventory.
NEVER seen dealerships so empty in my life. They had full lots 12 months ago, then the Democrats landed, like bad aliens, sucking the life out of the economy.
avery commented:
Why the Union leader not held responsible for the pension.They was the ones that spendest it trying to get Obama elect.
Paula commented:
This all becomes a mute point whe ‘dear leader’ mandates EVERYONE to purchase a GM product!
Francesca commented:
Moot point – not mute point. It is a legal term.
dallasdan commented:
GM has Obama and the Treasury Dept. in it’s pocket. They can and will say whatever they like, even if it’s pure bs.
Guy commented:
It’s absolutely amazing … what is happening to this country? We’ve got the President, government appointed CEO’s, and politicians at every level telling bold faced lies, and the media plays right along without missing a beat….
Am I the only one who thinks that we are facing anarchy and chaos in this country? Something must be done to restore at least a shred of truth and integrity to our government soon, or we are doomed. No society governed by pathological liars can possibly survive for long …
Kathy from Kansas commented:
AND HOW MUCH OF WE THE TAXPAYERS’ MONEY IS GM SPENDING ON ALL THESE DAMN ADS?!?!?!
Scott Wiggins commented:
Things will get much tougher for all the car-makers as the adolescent in Chief famously increased mileage standards on the industry while they were teetering on bankruptcy…Now, more billions will be spent to re-engineer vehicles to meet new requirements…The result will by skyrocketing costs which will further dampen sales…Of course, GM has the entire US Treasury supporting them so they should continue prosper and pay back their taxpayer debt with interest as Ed Whitacre said…What a pathetic liar!