Politics
Out of context: Reply #12327
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- Josev0
GM's grand announcement of paying off their loan early is misleading. It appears that GM has "repaid" the government with taxpayer's money. Money that was given to them as part of the TARP program and that was set aside in an escrow account.
http://www.nytimes.com/2010/05/0…
FROM THE ARTICLE:
"G.M. trumpeted its escape from the program as evidence that it had turned the corner in its operations. 'G.M. is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse,' boasted Edward E. Whitacre Jr., its chief executive.G.M. also crowed about its loan repayment in a national television ad and the United States Treasury also marked the moment with a press release: “We are encouraged that G.M. has repaid its debt well ahead of schedule and confident that the company is on a strong path to viability,” said Timothy F. Geithner, the Treasury secretary."
"Neil M. Barofsky, the inspector general overseeing the troubled asset program, revealed this detail when he spoke before the Senate Finance Committee on April 20.
“Neil M. Barofsky, the inspector general overseeing the troubled asset program, revealed this detail when he spoke before the Senate Finance Committee on April 20.
“So it’s good news in that they’re reducing their debt,” Mr. Barofsky said of G.M. But he went on to note that G.M. was using other taxpayer money to make the loan repayment, according to the transcript of his testimony."