C’mon, now, you didn’t really expect a car salesman to tell you the truth did you?

by editor on April 26, 2010

GM announced that it had repaid its government loan in full four years ahead of schedule, but Republican Senator Chuck Grassley said the whole announcement was the world’s largest case of bait-and-switch.

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.

“The bottom line seems to be that the TARP loans were ‘repaid’ with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials,” he wrote.

A deceptive car dealer. Who’d a thunk?

Source: Fox News

{ 5 comments… read them below or add one }

KimmyQueen April 26, 2010 at 10:15 am

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Am I unpatriotic in thinking this is disgusting?

This types of tactics are unbecoming of a true blue American company and companies like these should be allowed to be given the ax so other companies can emerge that have good products and good service.

jdub April 26, 2010 at 11:18 am

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I’m in the market for a new car….I will say right now…there is no way that car will be a Chevy…(or any GM car).

Thallus April 26, 2010 at 11:20 am

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Excuse me, but didn’t Government Motors receive something like $56 Billion in bailout money? Geez, talk about creative bookkeeping.

CO2 Insanity April 26, 2010 at 11:56 am

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Geitner used Turbo Tax to figure this out, worked good, just like it did for his tax bill.

Sinan Unur April 26, 2010 at 2:43 pm

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I commented on this briefly on April 21: Living the GM Life

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