Repaying Taxpayers With Their Own Cash

Taxpayers are naturally eager for news about bailout repayments. But what neither G.M. nor the Treasury disclosed was that the company simply used other funds held by the Treasury to pay off its original loan.

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.

Armed with this information, Mr. Grassley fired off a letter to Mr. Geithner on April 22, asking for details of the transaction. “I am concerned … that this announcement is not what it seems,” he wrote. “In fact, it appears to be nothing more than an elaborate TARP money shuffle.”

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Posted in * Economics, Politics, Corporations/Corporate Life, Economy, Ethics / Moral Theology, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Possibility of a Bailout for the U.S. Auto Industry, Theology

5 comments on “Repaying Taxpayers With Their Own Cash

  1. Sick & Tired of Nuance says:

    Gosh, where can I get in line to get one of these free government loans? I want and interest free loan, too!

    I demand equal treatment under the law. Corporations have been ruled to be [i]fictional[/i] persons, and they are getting these free loans, often billions of dollars, and then repaying them after a year. I want one too! Let me borrow billion dollars and I will deposit it in CDs for the year and I promise to pay it back. Of course, I get to keep the interest the CDs paid, since I took the risk with [i]my[/i] capital. I mean, really, that’s what capitalism is all about isn’t it? I should get a reward if I risk [i]my[/i] money in the [i]free[/i] market!

  2. Sick & Tired of Nuance says:

    Sorry for all the typos above. We have a 5 mo. old baby and sleep is a rare commodity.

  3. Cennydd says:

    If GM wants to repay the taxpayer, they can give us all new vehicles……free! Let’s see…..I could use a new minivan………

  4. David Keller says:

    Here’s what you don’t know. When AIG almost went bellyup, we gave them $180B which they used to pay margin calls to Bank of America, Wachovia, Wells Fargo, etc. Those banks then used that same money to pay back the TARP loans they got from you. Are you catching on yet?

  5. Cennydd says: