“The way to obtain which was an equity money center. That is fundamentally escrow cash, ” Barofsky stated.

“The way to obtain which was an equity money center. That is fundamentally escrow cash, ” Barofsky stated.

Apart from the outstanding stock problem, Whitacre’s statement has arrived under fire from Sen. Chuck Grassley, R-Iowa, whom notes that the loans had been paid back perhaps maybe perhaps not with GM profits (in reality, SEC filings reveal GM likely to have negative net cash flows in the 4th quarter of 2009) but instead from GM making use of a multi-billion-dollar escrow account that is TARP-funded.

“consequently, it really is uncertain just just how GM in addition to management could have accurately established yesterday that GM repaid its TARP loans in virtually any way that is meaningful” Grassley published within an April 22, 2010, page to Geithner. “the truth is, it appears like GM simply utilized one supply of TARP funds to settle another. [Read more…]