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Gm still is Government Motors
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<blockquote data-quote="Lue C Fur" data-source="post: 723031" data-attributes="member: 25159"><p>GM announced the repayment of $8.1 billion in loans from the U.S. and Canadian governments last week. In TV advertising, CEO Ed Whitacre tells viewers GM has "repaid our government loan in full, with interest, five years ahead of the original schedule. But there's still more to do."</p><p><span style="color: blue">The ads don't mention that the majority of the $52 billion in federal aid to GM was converted into a 61 percent government ownership stake.</span> GM has said it hopes to conduct a public stock offering later this year to let taxpayers recoup its investment.</p><p><span style="color: blue">GM paid off its loan from a $16 billion escrow fund created by the government as part of the company's bankruptcy last year. The fund was developed to give GM some cushion in case the economy tumbled but required the automaker to seek permission from the Treasury Department before spending it.</span></p><p>Treasury told Grassley in the letter it was "public knowledge that GM would use these specific funds to repay the Treasury and Canadian loans, if it did not otherwise need them for expenses."</p><p>Grassley called it "an elaborate TARP money shuffle" amounting to "taking TARP money out of one account to pay back TARP loans in another account."</p><p><span style="color: blue">The Congressional Budget Office estimates taxpayers will lose about $36 billion on the bailouts of automakers.</span></p></blockquote><p></p>
[QUOTE="Lue C Fur, post: 723031, member: 25159"] GM announced the repayment of $8.1 billion in loans from the U.S. and Canadian governments last week. In TV advertising, CEO Ed Whitacre tells viewers GM has "repaid our government loan in full, with interest, five years ahead of the original schedule. But there's still more to do." [COLOR=blue]The ads don't mention that the majority of the $52 billion in federal aid to GM was converted into a 61 percent government ownership stake.[/COLOR] GM has said it hopes to conduct a public stock offering later this year to let taxpayers recoup its investment. [COLOR=blue]GM paid off its loan from a $16 billion escrow fund created by the government as part of the company's bankruptcy last year. The fund was developed to give GM some cushion in case the economy tumbled but required the automaker to seek permission from the Treasury Department before spending it.[/COLOR] Treasury told Grassley in the letter it was "public knowledge that GM would use these specific funds to repay the Treasury and Canadian loans, if it did not otherwise need them for expenses." Grassley called it "an elaborate TARP money shuffle" amounting to "taking TARP money out of one account to pay back TARP loans in another account." [COLOR=blue]The Congressional Budget Office estimates taxpayers will lose about $36 billion on the bailouts of automakers.[/COLOR] [/QUOTE]
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