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Tuesday, November 17, 2009

GM Announces It Will Pay Back Gov’t Loan … With Gov’t Money


GM will be begin paying back the TARP money in December, the company announced this morning. It’s a statement in need of a little context.



Basically, GM will be using a portion of its $50 billion in TARP bailout money it received to in turn repay another portion of the TARP loans.



The reason GM can do this is because when GM emerged from bankruptcy, it struck a deal with the Treasury Department to carve up its obligation to the government in four different ways.


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1 comment:

Anonymous said...

GM has NOT fixed any of its problems. They got rid of all the salaried workers that produced for the company and have kept all of the incompetent fools that are part of the good ole boys club that are running the company like Fritz!