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Thread: GM repays TARP money 'early' ... with TARP money from a different account !

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    Banned Melonie's Avatar
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    Default GM repays TARP money 'early' ... with TARP money from a different account !

    (snip)Have you driven a Ford lately? That might be a good idea, as it seems that GM's claims to have repaid its TARP loans in full and ahead of schedule are, well, bullshit. Sen. Charles Grassley (R-Iowa) has sent a letter to Treasury Secretary Tim Geithner pointing out that GM has apparently paid back its TARP money with...more TARP money. Here's some of Grassley's query:

    During his testimony [Inspector General for TARP Neil] Barofsky addressed GM’s recent debt repayment activity, and stated that the funds GM is using to repay its TARP debt are not coming from GM earnings. Instead, GM seems to be using TARP funds from an escrow account at Treasury to make the debt repayments. The most recent quarterly report from the Office of the Special Inspector General for TARP says "The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account."...

    Therefore, it is unclear how GM and the Administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way. In reality, it looks like GM merely used one source of TARP funds to repay another. The taxpayers are still on the hook...

    The bottom line seems to be that the TARP loans were "repaid" with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the Administration have claimed in their speeches, press releases and television commercials. When these criticisms were put to GM’s Vice Chairman Stephen Girsky in a television interview yesterday, he admitted that the criticisms were valid:

    Question: Are you just paying the government back with government money?

    Mr. Girsky: Well listen, that is in effect true, but a year ago nobody thought we’d be able to pay this back.

    Girsky, you magnificent bastard! If you managed to say that line without laughing, you deserve all the unsold Pontiacs in North America. "(snip)

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    Default Re: GM repays TARP money 'early' ... with TARP money from a different account !

    I thought something was fishy but didn't have the time to look into it. Thank you Melonie.

    I found it impossible to believe that a company that was so fucked up in December and January ( no inventory ; late filling orders ; owing billions to dealers for warranty work ) could turn it around in just one quarter.

    I also knew Whitacre was no Iacocca.

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    Default Re: GM repays TARP money 'early' ... with TARP money from a different account !

    Did you happen to read Lee Iacocca's book on lack of leadership in America? I smiled and was saying "yes" under my breath all the way thru it. (I read it in about an hour or two in the library.)
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: GM repays TARP money 'early' ... with TARP money from a different account !

    and the US gov't itself appears to be 'playing games' with TARP money as well ...


    (snip)"The report shows US Treasury receipts were down disturbingly and almost all government outlays were up. I personally have had Profit & Loss responsibility on numerous occasions during my career and I would have been apprehensive facing the auditors or board of directors with such a blatant example of mismanagement. Absolutely no cuts in expenses, with falling revenues, all made to marginally appear better than the February report by a single line item called “other”. Executives get fired for such a report but governments just carry on until the inevitable crisis event finally occurs. Then the traditional blame game begins, blame is assigned and belated and poorly formulated policy responses are enacted.

    So what is this ‘other’? When you examine the Outlay Ledger of the Department of the Treasury for March 2010 (below) you see it to be a onetime item classified as a negative outlay. For the non accountants, this is a government receipt that is placed in the outlays as a negative amount, thereby showing government outlays to be smaller than they otherwise would have been. Though this is acceptable accounting it would lead to the wrong conclusions, unless you read the details buried in the back pages. This ‘other’ is referred to as a “Proprietary Receipt from the Public”.

    An IRS document explains just what that means in an accounting context: "Proprietary Receipts from the Public are collections from outside the Government that are deposited in receipt accounts that arise as a result of the Government’s business-type or market-oriented activities. Among these are interest received, proceeds from the sale of property and products, charges for non-regulatory services, and rents and royalties."(2)

    This is a $117.3 BILLION amount!! The total 2010 US Tax receipts for US Corporations is only budgeted to be $157 Billion!

    My investigations suggest that it is likely suspiciously engineered TARP (Troubled Asset Relief Program) money being returned to the US Treasury, along with a slowdown in TARP issuance versus budget. Assuming this is the case, and not simply an aircraft carrier or two we have sold and are now leasing back, like California is doing with all state owned buildings, we still have a major problem. What happens next month? The TARP fund returns will stop or we will run out of aircraft carriers. Is unemployment going to surge or are corporate tax receipts going to expand by over $117B next month?

    Timothy Geithner and the US Treasury somehow dodged the bullet because of ‘other’ this month"(snip)

    from

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