Sen. Susan Collins of Maine (R) said General Motors’ (GM) recent ad about having repaid government loans is misleading. She asked Treasury Secretary Timothy Geithner, during a hearing Thursday, if the statement was true.
Collins said the special inspector general of TARP told her GM “used one pot of federal money to pay back another federal loan,” and if that is true, the ad’s statement about repaying “our government loan in full, with interest, five years ahead” is misleading.
Secretary Geithner did not deny or explain how GM paid back the loans, but responded by saying Americans can evaluate the situation for themselves because Treasury “provide[s] very careful, enormously detailed estimates of [the government’s] remaining exposure in the financial system all the time, to make sure we are being open and candid.”
Collins said GM still owes the American taxpayers millions of dollars. Geithner agreed and explained GM has paid back its outstanding loans to the federal government, but the government still has equity investments in GM in which there is some risk of losing money.
Geithner said that after the forced restructuring last year GM is stronger financially and able to repay the taxpayer sooner than expected.
Collins said the special inspector general of TARP told her GM “used one pot of federal money to pay back another federal loan,” and if that is true, the ad’s statement about repaying “our government loan in full, with interest, five years ahead” is misleading.
Secretary Geithner did not deny or explain how GM paid back the loans, but responded by saying Americans can evaluate the situation for themselves because Treasury “provide[s] very careful, enormously detailed estimates of [the government’s] remaining exposure in the financial system all the time, to make sure we are being open and candid.”
Collins said GM still owes the American taxpayers millions of dollars. Geithner agreed and explained GM has paid back its outstanding loans to the federal government, but the government still has equity investments in GM in which there is some risk of losing money.
Geithner said that after the forced restructuring last year GM is stronger financially and able to repay the taxpayer sooner than expected.
