So, it's reported that GM paid back the government loans.
On MSNBC: Source says GM to pay back U.S. loans early - nice touch how they mention repaying loans in the context of the earnings report. (CYA "Source says" - by using "Source says" it is not MSNBC that is lying to you, it's that durned source.
On ABC: General Motors Pays Back $8 Billion to Taxpayers Ahead of Schedule - actually, taxpayers paid back $8 Billion to Taxpayers... I don't think they even had a schedule. "$8.1 billion in government loans repaid, five years ahead of schedule and nine months after the troubled auto giant declared bankruptcy, signaling that the auto maker may be on the path to profitability" If you use one credit card to pay off another credit card, does that signal that you may have found a job? Or maybe it signals that you are having clam chowder for lunch? This is just pathetic.
Well here's a surprise!
Mother Jones : GM Will Pay Back Gov't Loan...With Gov't Money? - Mother Jones has more journalistic integrity than ABC and NBC.
Letter From Charles E. Grassley to The Honorable Timothy F. Geithner
Furthermore, Exhibit 99.1 of the Form 8K filed by GM with the SEC on November 16, 2009, seems to confirm that the source of funds for GM’s debt repayments was a multi-billion dollar escrow account at Treasury—not from earnings. In the 8K filing GM acknowledged:
- Of the $42.6 billion in cash and marketable securities available to GM as of September, 30, 2009, $17.4 billion came from an escrow account with Treasury,
- $6.7 billion of the escrow account available to GM was allocable to the repayment of loans to Treasury,
- $5.6 billion in cash would remain in the Treasury escrow account following the repayment by GM of their loans, and
- Upon repaying Treasury, any balance of escrow funds would be released to GM.