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| “the money GM used to repay its bailout loan had come from a tax-payer financed escrow account held for the automaker at the Treasury.” |
On April 21, the Wall Street Journal published an op ed by Ed Whitacre, CEO of General Motors, claiming GM had paid back the money it had borrowed from the government — plus interest. GM ads boasted of their rapid repayment of the company’s TARP loan debts. (The GM Bailout: Paid Back in Full)
“Today, General Motors is announcing that it has made a payment of $5.8 billion to the U.S. Treasury and Export Development Canada,” wrote Whitacre. “We’re paying back– in full, with interest, years ahead of schedule– loans made to help fund the new GM.”
Wow, I said to no one, “I can’t believe this.” GM paying back loans, as the ad says, “less than a year after emerging from bankruptcy.”
Even President Obama agreed. “Many believed this was a fool’s errand. Many feared we would be throwing good money after bad: that taxpayers would lose most of their investment and that these companies would soon fail regardless,” said Obama. (Presidential address, May 1)
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