and America takes another one in the........
rlmorel
Posted on 05/01/2010 10:35:44 PM PDT by GVnana
ReasonTV — April 30, 2010 — General Motors CEO Ed Whitacre has bragged in TV commercials and newspaper columns that GM has paid back its bailout "in full and ahead of schedule."
As with the Pontiac Aztek, an ugly exterior masks an ever darker problem: Whitacre is being fanciful to the point of deceit. GM received $50 billion in TARP funds (never mind that TARP was only supposed to cover financial institutions). About $7 billion of that came in the form of a straight-up, low-interest loan. And about $13 billion came in the form of an escrow account.
So how has GM, which lost $38 billion in 2007 even as it sold 9.4 million cars, paid back its debt? It took money from the escrow account to pay back the $6.7 billion loan.
(Excerpt) Read more at youtube.com ...
The SEC needs to charge itself, zero, Gaithner, Chris Dodd, Cheezy Schemer, Bawney Fwank and a huge raft of other pols with fraud first before they move on to the private sector.
GM is NOT a publicly traded company anymore. If you put GM into the stock clicker it comes up as a last trade of .75 the last trade before Bankruptcy.
The Obama Administration overturned 200 years of bankruptcy law and split the company into a private GM 75% owned by the Federal Government 20% owned by the UAW and around 5% owned by Canadian gov’t give or take a few percentage points.
They gave the stock holders, bond holders and creditors stock in a worthless company called Motors Liquidation Corporation (MTLQQ.PK) This company consists of all the closed factories, worthless assets and yes all the DEBT.
If course they didn’t. They never will either unless they can rid themselves of their Union Insurance and Medical obligations. That’s why they needed the bailout in the first place.
The CEO is in Obama’s good graces. This was a political ploy for people to stop buying Ford and to think GM was independent of the government control.
Why blame only the CEO when he was most likely told to go along with his ploy?
LOL!!! Those ugly sh!t boxes have always looked like a robot rhino to me.
Did he overturn law, or simply violate it, committing a massive theft?
Are there not multiple lawsuits being brought by the bondholders?
Could it be that the mountain of government bailout cash was overkill-----much more than necessary? That the repayment is nothing other than a WH political and marketing ploy whereby the government gets repaid with the very same money they handed out?
WE BETTER CALL THE COPS Over-lending on a loan to achieve quick initial repayment (and thus inflate the loan's perceived value), in the private sector, is called fraud.
DID YOU KNOW? TARP was not designed to be a pool of money available for bailout of just anything that didn't move, like a couple of bankrupt unionized companies in the automobile industry. It was very specific in its purpose to provide liquidity to frozen banking and financial system and stave off the run on the banks (attack on the financial system, by proxy) and allow the 'netting' of the [frozen] assets on the books of financial institutions, in the aftermath of fall of Lehman Bros and run on trillions of dollars in the money market funds in the consequent "breaking the buck" by private Reserve Primary Fund managed by Bruce Bent.
The $700B TARP Bailout is now being called, "A MASTERFUL DECEIT." Paulson, et al, may not have pulled a fast one when he testified in favor of the TARP before Congress----but Congress' phony outrage is a puzzlement. If HR 1424 was a 'MASTERFUL DECEIT' then CONGRESS didn't do its job.
TITLE I—TROUBLED ASSETS RELIEF PROGRAM (required 'Congressional Oversight' sections listed)
Sec. 101. Purchases of troubled assets.
Sec. 102. Insurance of troubled assets.
Sec. 103. Considerations.
Sec. 104. Financial Stability Oversight Board.
Sec. 105. Reports.
Sec. 107. Contracting procedures.
Sec. 108. Conflicts of interest.
Sec. 111. Executive compensation and corporate governance.
Sec. 116. Oversight and audits.
Sec. 118. Funding.
Sec. 119. Judicial review and related matters.
Sec. 121. Special Inspector General for the Troubled Asset Relief Program.
Sec. 125. Congressional Oversight Panel.
Sec. 127. Cooperation with the FBI.
Sec. 129. Disclosures on exercise of loan authority.
In HR 1424, there are enough rules, regs and CONGRESSIONAL OVERSIGHT REQUIRED that not one Thin Dime should have been 'misspent.' So if anything crooked did go on Congress should look in a mirror. They dropped the ball -- again. And the same Gangster Government will run our healthcare.
==============================
Sen Grassley works to establish facts behind claim that GM repaid its TARP loan
Press Office of Sen Chuck Grassley
FR Posted on Wednesday, April 28, 2010 6:34:35 PM by quesney
EXCERPT --- Senator Chuck Grassley today continued to peel back the layers of taxpayer obligations behind last week’s claim and fanfare about General Motors repaying its multi-billion dollar loan from the Troubled Asset Relief Program, the $700 billion taxpayer-funded bailout. --SNIP-- Long Read
Money quote: Sen Grassley: "The Congressional Budget Office estimates that taxpayers will lose around $30 billion on GM. In addition, the payment that occurred last week did not come from revenue GM earned by selling cars, despite what was claimed. Instead, Treasury allowed GM to use funds in a separate escrow account to pay its TARP debt."
Ping to post #28
and America takes another one in the........rlmorel
As much as it pains me to say it knowing GM-er's that are good people and great engineers, Professor Dunkelberg is right. I hate to say it, but this business model can't fly unless Glenn Beck is right and the Fedzilla absorbs the GM pension.
All the liberals around the country don't get it that @ 61% ownership and 15% (or more?) UAW ownership even with an IPO what are you getting?
Plant, Equipment, Intellectual Property and Employee Intangibles yes, But you still get all the legacy debt, i.e. the Pensions and the "VEBA", the pension was never turned "off" in the bankruptcy.
Ford has turned their VEBA liabilitity into long term notes and for all intensive purposes it has been put to bed.
When I hear all the business wonk and wonkets say GM will kick their but when the go public I say, ya show me... They didn't make any money per this article and still have the VEBA and Pension hanging over our heads as unwilling tangenital shareholders...
If you're going to fling a charge like this, it is dishonest to omit the obvious. GMAC is a financial institution.
They just did it via cram down and arm twisting and the puppet judge did not stop it. We now have a new dangerous legal precident IMHO and no I am not an attorney. Fundementally Transform America? Why yes, if bankruptcy is not bankrupcty anymore what where when and why would you put your labor and capital at risk....
And timed a week before Ford's spectacular Profit numbers came out.
Hmm.... Could it be they had a feeling Ford's numbers would be astronomical and they had to do something to not look so bad or get people to pay attention to the man behind the curtain, and ask critically thinking business/accounting equation stuff about GM's reinventing of itself ?
Hmmmmm.....
I don't know, but what I want to know is did he violate any Sarbanes-Oxley rules with these pronouncements and commericals?
Any Accounting/Sarbanes-Oxley experts here on FR?
I feel the same way. Never. After the way the investors were treated in this whole affair, the way the whole thing was done to benefit and mollify the UAW, and the way the government held these show trials to demonize the competition (Toyota), never, Never, NEVER will I buy a UAW made car, as long as I have a say in the matter.
No.
If you recall the CEO of GM was hired directly by Barry O'bama so any such 'going after' would be out of the question. Kind of like Eric Holder investigating Barry for abuse of power.
Plus, he didn't really 'lie', he just 'misspoke'.
ps: You'll never guess in a gazillion years who FDR picked to be the first Chairman of the SEC ..... ya better sit down .... hold on .... put down any sharp objects ... ready ... okay .... here it comes......
[Joseph P. Kennedy!]
(use your mouse to highlight between the brackets)
Obama is going through with his AGENDA. He does not care how much we uncover or what he has to do. Obama proved what type of politician he is with healthcare. With all the promises, the arm twisting, and bribes, Obama didn’t care that the Dems fell on the knife for him.
Obama will not stop until we stop him with a Conservative Congress, and get him out of the White House through proceedings that will have to take place if he continues the path he is on at this time.
Obama is one dangerous person. Most of us knew this about him, but honestly, he is proving himself to be much more dangerous than first believed.
That's true - my bad.
They're just a government held dishonest company now.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.