Grassley to Establish Facts Behind GM TARP Loan

This story appeared in Bank Digest.

Senator Chuck Grassley, R-Iowa, continues to question last week's claim that General Motors repayed its multi-billion dollar loan from the Troubled Asset Relief Program. Last week, Grassley asked the Treasury Secretary why the administration had allowed GM to use money from an escrow account at the Treasury Dept. to repay this loan, which he called “an elaborate TARP money shuffle.” In a floor speech April 28, Grassley said the response he received from the Treasury confirmed that taxpayers funded the loan repayment by way of cash that GM has because the federal government originally loaned that cash to GM, and then the federal government agreed to forgive some of GM's debt during bankruptcy in exchange for stock in the company, the value of which is uncertain.