GM Repaid Federal Loan with federal money
04-23-2010, 01:26 AM
#1
Melting Slicks
Thread Starter
GM Repaid Federal Loan with federal money
WASHINGTON -- General Motors Co. repaid its $4.7 billion federal loan this week with other U.S. funds, creating nothing more than a “money shuffle,” a Republican senator said today.
Sen. Charles Grassley of Iowa, the senior Republican on the Finance Committee, cited an auditor's report that GM repayments were coming from U.S. Troubled Asset Relief Program funds in an escrow account, rather than from GM earnings. The U.S. Treasury and GM disputed aspects of Grassley's claim.
“It is unclear how GM and the administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way,” Grassley said in a letter to Treasury Secretary Timothy Geithner. “The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell GM stock in the future.”
Less than a year after filing for bankruptcy, GM yesterday paid off the last $4.7 billion in U.S. loans and $1.1 billion in Canadian loans.
GM received a total of about $50 billion of U.S. assistance in its bailout, much of which was converted into stock. The U.S. Treasury Department holds 61 percent of the common stock of the automaker.
The company is preparing for an initial public offering that would let the U.S. government reduce its stake.
Treasury said today that GM repaid its loan from its own cash account that was part of the government's overall investment.
“This account was expected to be used for extraordinary expenses, and the fact that GM has decided that it does not need to reserve these funds for expenses is a positive sign for our overall investment,” Treasury spokeswoman Meg Reilly said.
GM repaid the loans ahead of its self-imposed June 30 deadline, she said.
GM spokesman Greg Martin deferred to Treasury's response. He said that the company decided to repay the loan early “because we believe we have a sufficient cash balance and it's important for the company to pay back its debts as soon as possible.”
The audit cited by Grassley was reported to Congress this week by the TARP inspector general, Neil Barofsky.
The source of funds for GM's loan repayments “will be other TARP funds currently held in an escrow account,” the Tuesday, April 20, audit report said.
The audit cited GM's own filing with the government in November. GM said then the loan repayment would come from leftover funds set aside by the Obama administration to finance GM's fast-track sale out of bankruptcy in July.
You can reach Neil Roland at nroland@crain.com.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0ltkDyB30
Sen. Charles Grassley of Iowa, the senior Republican on the Finance Committee, cited an auditor's report that GM repayments were coming from U.S. Troubled Asset Relief Program funds in an escrow account, rather than from GM earnings. The U.S. Treasury and GM disputed aspects of Grassley's claim.
“It is unclear how GM and the administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way,” Grassley said in a letter to Treasury Secretary Timothy Geithner. “The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell GM stock in the future.”
Less than a year after filing for bankruptcy, GM yesterday paid off the last $4.7 billion in U.S. loans and $1.1 billion in Canadian loans.
GM received a total of about $50 billion of U.S. assistance in its bailout, much of which was converted into stock. The U.S. Treasury Department holds 61 percent of the common stock of the automaker.
The company is preparing for an initial public offering that would let the U.S. government reduce its stake.
Treasury said today that GM repaid its loan from its own cash account that was part of the government's overall investment.
“This account was expected to be used for extraordinary expenses, and the fact that GM has decided that it does not need to reserve these funds for expenses is a positive sign for our overall investment,” Treasury spokeswoman Meg Reilly said.
GM repaid the loans ahead of its self-imposed June 30 deadline, she said.
GM spokesman Greg Martin deferred to Treasury's response. He said that the company decided to repay the loan early “because we believe we have a sufficient cash balance and it's important for the company to pay back its debts as soon as possible.”
The audit cited by Grassley was reported to Congress this week by the TARP inspector general, Neil Barofsky.
The source of funds for GM's loan repayments “will be other TARP funds currently held in an escrow account,” the Tuesday, April 20, audit report said.
The audit cited GM's own filing with the government in November. GM said then the loan repayment would come from leftover funds set aside by the Obama administration to finance GM's fast-track sale out of bankruptcy in July.
You can reach Neil Roland at nroland@crain.com.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0ltkDyB30
04-23-2010, 07:19 AM
#5
Team Owner
I doubt they would have needed a loan if the USA treated foreign countries like Japan the way Japan and Korea treat US products. I ,eam with Korea, & Japan having less than 4% imported cars from the entire auto world all while they dump crap here by the millions units.
Does it strike you as strange that Renault is a majority holder in Nissan but they are not allowed to sell a Renault in a Nissan showroom? Fiat cannot penetrate Japan with small cars either? EU taxes the crap out of American cars also. GM is not perfect but if USA treated to foreign nations they way they stick it to the USA on cars to beef or rice they would be sucking wind! You wonder why we have no jobs here in manufacturing and the economy sucks?
They Japanese car companies benefited greatly from cars for clunkers but when they did it they shafted the USA cars by excluding them. Funny I hear no outrage over that on the forum
We cannot even make an LCD screen for a fighter plane any more.
It is all one-way trade deals that are robbing this country of it's might. I look at everything I buy as to where it is made. Who needs crap from China? Not me.
I guess it would be better if they just kept the money? Their labor cost is about as good as any company now, new products with rising sales, employing more people but I guess it would have better to let them fail?
Lutz told it like it is when he said you can't even build a US plant in Japan if you wanted to. The head of the WTO also said Japan is the most closed industrialized nation in the world to trade. Companies come here and get all kinds of tax breaks for 20 + years and GM, Ford, & Chrysler got what else but the shaft. They laugh at us in Japan for having no national policy as they watch states cut each others throats.
GM wanted to import 7500 CTS's to China but they told them if you want to sell them here in China build then here. No outrage there is there?
The Obama finally did something about China dumping tires here and people were in outrage because China makes tons of money lending the US money? So it is great for them to dump there crap here and make money, then make more money buying notes so they skin us both ways. Then add in currency manipulation from China and Japan. Currency manipulation reported to give Japan an average of $4500 per car through the years and even up to 12,000 on high end cars it is a wonder we have any industry here.
What has either party done for free trade? Near ZERO as I cab see through the years. China has 25-30% + advantage just in currency exchange when making a product against US companies.
Japan blocks US auto part companies form selling in Japan all while they have over 250 plants here in the US. Many should bitch about that too.
Does it strike you as strange that Renault is a majority holder in Nissan but they are not allowed to sell a Renault in a Nissan showroom? Fiat cannot penetrate Japan with small cars either? EU taxes the crap out of American cars also. GM is not perfect but if USA treated to foreign nations they way they stick it to the USA on cars to beef or rice they would be sucking wind! You wonder why we have no jobs here in manufacturing and the economy sucks?
They Japanese car companies benefited greatly from cars for clunkers but when they did it they shafted the USA cars by excluding them. Funny I hear no outrage over that on the forum
We cannot even make an LCD screen for a fighter plane any more.
It is all one-way trade deals that are robbing this country of it's might. I look at everything I buy as to where it is made. Who needs crap from China? Not me.I guess it would be better if they just kept the money? Their labor cost is about as good as any company now, new products with rising sales, employing more people but I guess it would have better to let them fail?
Lutz told it like it is when he said you can't even build a US plant in Japan if you wanted to. The head of the WTO also said Japan is the most closed industrialized nation in the world to trade. Companies come here and get all kinds of tax breaks for 20 + years and GM, Ford, & Chrysler got what else but the shaft. They laugh at us in Japan for having no national policy as they watch states cut each others throats.
GM wanted to import 7500 CTS's to China but they told them if you want to sell them here in China build then here. No outrage there is there?
The Obama finally did something about China dumping tires here and people were in outrage because China makes tons of money lending the US money? So it is great for them to dump there crap here and make money, then make more money buying notes so they skin us both ways. Then add in currency manipulation from China and Japan. Currency manipulation reported to give Japan an average of $4500 per car through the years and even up to 12,000 on high end cars it is a wonder we have any industry here.
What has either party done for free trade? Near ZERO as I cab see through the years. China has 25-30% + advantage just in currency exchange when making a product against US companies.
Japan blocks US auto part companies form selling in Japan all while they have over 250 plants here in the US. Many should bitch about that too.
Last edited by John Shiels; 04-23-2010 at 08:03 AM.
04-23-2010, 09:38 AM
#6
Melting Slicks
It makes me sick. Citi did the same thing. Secured a huge tax break and just days later, "paid" nearly the same amount "back". The fact that the Treasury gave the tax break in almost the identical amount it was owed for bailout funds is disgusting.
04-23-2010, 10:42 AM
#7
Le Mans Master
Guess who pays for that?
I'm in the textile business here in the land of virgin pines and tall women, and we've seen such an exodus of manufacturing that it has decimated the state's economy and ruined families who depended on textiles and furniture as a way of supporting themselves. In our company we had over 300 employees at one time, with full benefits including a 401-k plan, 2 weeks vacation, and a fabulous health insurance plan. Now we're down to ~70, and we're reviewing the benefits. Obama-care will very likely end our health care plan.
We're one of only a few manufacturers left doing what we do here in the U.S. It'll never get back to what it was and those families who aren't smart enough to become brain surgeons or overpaid gov't workers will become perpetual wards of the state, and for future generations that doesn't bode well.
For me, my race is about run, but I expect you younger guys to pick up the mantle and proceed forward into a strong headwind, since my Social Security payments depend on you.
Remember boys, I was never late in my payments to the gov't so I expect my direct deposits to be on time and in full. [/rant]
04-23-2010, 12:50 PM
#8
Instructor
Member Since: Jan 2004
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Falcon, your insight is once again very insightful 
!! Yaaaaa....lets see who was Prez when NAFTA was rammed through? I am a dumb cheezhead from da North but I said then it was the end of our middle class. It does surprise me a little though that they would have to tap into the "special" tarp fund to repay the original tarp fund....why didn't they just go into Barack's "stash"????? God, don't get me going on this crap. I come on here to relax a little and then you guys have to bring this CRAP up!!!!
!! Yaaaaa....lets see who was Prez when NAFTA was rammed through? I am a dumb cheezhead from da North but I said then it was the end of our middle class. It does surprise me a little though that they would have to tap into the "special" tarp fund to repay the original tarp fund....why didn't they just go into Barack's "stash"????? God, don't get me going on this crap. I come on here to relax a little and then you guys have to bring this CRAP up!!!!
Last edited by GAS; 04-23-2010 at 12:56 PM.
04-23-2010, 01:11 PM
#9
Le Mans Master
Falcon, your insight is once again very insightful !! Yaaaaa....lets see who was Prez when NAFTA was rammed through? I am a dumb cheezhead from da North but I said then it was the end of our middle class. It does surprise me a little though that they would have to tap into the "special" tarp fund to repay the original tarp fund....why didn't they just go into Barack's "stash"????? God, don't get me going on this crap. I come on here to relax a little and then you guys have to bring this CRAP up!!!!
!! Yaaaaa....lets see who was Prez when NAFTA was rammed through? I am a dumb cheezhead from da North but I said then it was the end of our middle class. It does surprise me a little though that they would have to tap into the "special" tarp fund to repay the original tarp fund....why didn't they just go into Barack's "stash"????? God, don't get me going on this crap. I come on here to relax a little and then you guys have to bring this CRAP up!!!!
04-23-2010, 01:47 PM
#10
Drifting
I doubt they would have needed a loan if the USA treated foreign countries like Japan the way Japan and Korea treat US products. I ,eam with Korea, & Japan having less than 4% imported cars from the entire auto world all while they dump crap here by the millions units.
Does it strike you as strange that Renault is a majority holder in Nissan but they are not allowed to sell a Renault in a Nissan showroom? Fiat cannot penetrate Japan with small cars either? EU taxes the crap out of American cars also. GM is not perfect but if USA treated to foreign nations they way they stick it to the USA on cars to beef or rice they would be sucking wind! You wonder why we have no jobs here in manufacturing and the economy sucks?
They Japanese car companies benefited greatly from cars for clunkers but when they did it they shafted the USA cars by excluding them. Funny I hear no outrage over that on the forum
We cannot even make an LCD screen for a fighter plane any more. It is all one-way trade deals that are robbing this country of it's might. I look at everything I buy as to where it is made. Who needs crap from China? Not me.
I guess it would be better if they just kept the money? Their labor cost is about as good as any company now, new products with rising sales, employing more people but I guess it would have better to let them fail?
Lutz told it like it is when he said you can't even build a US plant in Japan if you wanted to. The head of the WTO also said Japan is the most closed industrialized nation in the world to trade. Companies come here and get all kinds of tax breaks for 20 + years and GM, Ford, & Chrysler got what else but the shaft. They laugh at us in Japan for having no national policy as they watch states cut each others throats.
GM wanted to import 7500 CTS's to China but they told them if you want to sell them here in China build then here. No outrage there is there?
The Obama finally did something about China dumping tires here and people were in outrage because China makes tons of money lending the US money? So it is great for them to dump there crap here and make money, then make more money buying notes so they skin us both ways. Then add in currency manipulation from China and Japan. Currency manipulation reported to give Japan an average of $4500 per car through the years and even up to 12,000 on high end cars it is a wonder we have any industry here.
What has either party done for free trade? Near ZERO as I cab see through the years. China has 25-30% + advantage just in currency exchange when making a product against US companies.
Japan blocks US auto part companies form selling in Japan all while they have over 250 plants here in the US. Many should bitch about that too.
Does it strike you as strange that Renault is a majority holder in Nissan but they are not allowed to sell a Renault in a Nissan showroom? Fiat cannot penetrate Japan with small cars either? EU taxes the crap out of American cars also. GM is not perfect but if USA treated to foreign nations they way they stick it to the USA on cars to beef or rice they would be sucking wind! You wonder why we have no jobs here in manufacturing and the economy sucks?
They Japanese car companies benefited greatly from cars for clunkers but when they did it they shafted the USA cars by excluding them. Funny I hear no outrage over that on the forum
We cannot even make an LCD screen for a fighter plane any more.
It is all one-way trade deals that are robbing this country of it's might. I look at everything I buy as to where it is made. Who needs crap from China? Not me.I guess it would be better if they just kept the money? Their labor cost is about as good as any company now, new products with rising sales, employing more people but I guess it would have better to let them fail?
Lutz told it like it is when he said you can't even build a US plant in Japan if you wanted to. The head of the WTO also said Japan is the most closed industrialized nation in the world to trade. Companies come here and get all kinds of tax breaks for 20 + years and GM, Ford, & Chrysler got what else but the shaft. They laugh at us in Japan for having no national policy as they watch states cut each others throats.
GM wanted to import 7500 CTS's to China but they told them if you want to sell them here in China build then here. No outrage there is there?
The Obama finally did something about China dumping tires here and people were in outrage because China makes tons of money lending the US money? So it is great for them to dump there crap here and make money, then make more money buying notes so they skin us both ways. Then add in currency manipulation from China and Japan. Currency manipulation reported to give Japan an average of $4500 per car through the years and even up to 12,000 on high end cars it is a wonder we have any industry here.
What has either party done for free trade? Near ZERO as I cab see through the years. China has 25-30% + advantage just in currency exchange when making a product against US companies.
Japan blocks US auto part companies form selling in Japan all while they have over 250 plants here in the US. Many should bitch about that too.
well said!!
04-23-2010, 04:35 PM
#12
ugh auto manufacturer general mottors is crossing an important road in it's restructuring while racing against time to reaffirm itself as an independent business
there you go! the thread totally belongs here now!
there you go! the thread totally belongs here now!
04-23-2010, 04:45 PM
#13
Melting Slicks
Member Since: Sep 2006
Location: Beaverton OR
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Ask yourself this one question: Would we be in this financial debacle if Fannie Mae and Freddie Mac (both legislative inventions) never existed?
No. People who could actually afford to pay for their houses would be in them and those that could not would be renters. There would have never been a housing "bubble" and we would have avoided all of the ripple effects on the entire economy.
I'm going to pour myself an adult beverage to relax.
04-23-2010, 05:29 PM
#14
Team Owner
Perot that sucking sound! Now it is from China and a tornado.
If god made everything on earth then God must be in China!
Look what happen to David Farmers business in textile supplies. Glad I am 58 and not 18. No clue what kids will do in the future.
Got my tap & die set today and bought Snap-on as the rest I looked at were all Chinese
Went to buy a brick hammer the other day at block manufacturer / supplier. 4 choices two from China, one from Taiwan, one from USA. I told him and you wonder why there is no work here!
We will be on our knees soon! We will be England number II.
If god made everything on earth then God must be in China!
Look what happen to David Farmers business in textile supplies. Glad I am 58 and not 18. No clue what kids will do in the future.
Got my tap & die set today and bought Snap-on as the rest I looked at were all Chinese
Went to buy a brick hammer the other day at block manufacturer / supplier. 4 choices two from China, one from Taiwan, one from USA. I told him and you wonder why there is no work here!
We will be on our knees soon! We will be England number II.
Last edited by John Shiels; 04-23-2010 at 05:35 PM.
04-23-2010, 05:38 PM
#15
Team Owner
Ask yourself this one question: Would we be in this financial debacle if Fannie Mae and Freddie Mac (both legislative inventions) never existed?
No. People who could actually afford to pay for their houses would be in them and those that could not would be renters. There would have never been a housing "bubble" and we would have avoided all of the ripple effects on the entire economy.
I'm going to pour myself an adult beverage to relax.
04-23-2010, 06:22 PM
#16
Melting Slicks
Member Since: Sep 2006
Location: Beaverton OR
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Regardless, the less government we have, the better off we will all be.
BTW, I feel like a crack addict without a pipe. First race of the season here in the PNW and I'm waiting on two shops to finish work on my car before I can get it back out on the track.
04-23-2010, 07:00 PM
#17
Racer
Perot that sucking sound! Now it is from China and a tornado.
If god made everything on earth then God must be in China!
Look what happen to David Farmers business in textile supplies. Glad I am 58 and not 18. No clue what kids will do in the future.
Got my tap & die set today and bought Snap-on as the rest I looked at were all Chinese
Went to buy a brick hammer the other day at block manufacturer / supplier. 4 choices two from China, one from Taiwan, one from USA. I told him and you wonder why there is no work here!
We will be on our knees soon! We will be England number II.
If god made everything on earth then God must be in China!
Look what happen to David Farmers business in textile supplies. Glad I am 58 and not 18. No clue what kids will do in the future.
Got my tap & die set today and bought Snap-on as the rest I looked at were all Chinese
Went to buy a brick hammer the other day at block manufacturer / supplier. 4 choices two from China, one from Taiwan, one from USA. I told him and you wonder why there is no work here!
We will be on our knees soon! We will be England number II.
04-23-2010, 07:36 PM
#20
Team Owner
each tap & die plus the handles all say Made in USA and I get a lifetime warranty if they break. It was 325 for a 76 piece set. I doubt Snapon tools are made in china. I see that Sears has started selling certain wrenches that are made in China and it says it right on them it is just packaged towards the back so you don't see it.
I keep sending Sears emails for what ever it's worth on their crap from China. They will dilute their Craftsman brand ( whats left of it) and they have Evolve crap from china. Like AJ Foyt said at least you know where it came from on the commercial. Hey that was last year and this is a new year but we still know. Now some are from Communist China!
I keep sending Sears emails for what ever it's worth on their crap from China. They will dilute their Craftsman brand ( whats left of it) and they have Evolve crap from china. Like AJ Foyt said at least you know where it came from on the commercial. Hey that was last year and this is a new year but we still know. Now some are from Communist China!
Last edited by John Shiels; 04-23-2010 at 07:50 PM.
