Government and GM lied about loan repayment

By now it’s becoming clear that Government Motors lied when they proclaimed that they paid back their government loans “…in full, with interest, five years ahead of the original schedule.” (more here) Even the state-run media is running with the story.

What is also coming to light is that the Treasury Department also lied about the repayment. (story here)

The Treasury Department, under fire for supporting General Motors’ claim that the company was paying off its government bailout with that same bailout money, is trying to set the record straight.

Treasury “never” suggested GM had repaid the bailout in full, according to an April 30 department letter to House oversight committee ranking member Darrell Issa, California Republican.

The only problem is Treasury’s evidence, which the agency helpfully attached. It’s a press release that reads: “GM REPAYS TREASURY LOAN IN FULL.”

So now that the bullshit lie has been exposed, tax cheat Tim Geithner is backing away from the department’s press release.

Darrell Issa [R-CA], the Treasury Department’s inspector general, and others have been holding both GM’s and Treasury’s feet to the fire, claiming the two were deceptively passing off the loan repayment – in truth only a shifting of funds – as the end of the government’s involvement in GM.

Now, Treasury says it “never suggested that the loan repayment represented a full return of all government assistance.”

The April 21 Treasury press release notes that the government retains an ownership stake in the company, acknowledging the government’s continued involvement with the firm. But Issa slammed the agency for being deceptive.

“While their might exist some ambiguity within the Department of the Treasury regarding what it means to pay the U.S. taxpayers back in full, the rest of America knows better than to fall for GM’s deceptive ad campaign backed by the Treasury Department aiming to defraud the American people,” Issa said in a written statement.

Yeah right, the bailout is working…

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One Response to “Government and GM lied about loan repayment”

  1. […] czar,” Steven Rattner, resigned under a cloud of suspicion, GM (and the Treasury Dept.) lied about paying back its government loans, GM execs who were responsible for the collapse of the company scored huge bonuses, and their […]

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