Quote:
Originally Posted by truth411
argh... they returned unused bailout money back to the government , so whats the problem???
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GM got, possibly, a helluva win here with this "pay-off." There are people who now... even before the IPO... who think that GM is already free of any governmental involvement. It's amazing that the ignorance of this country serves to hurt at the same time as help the General.
People here can try and argue that the loan was paid back via the Escrow fund set up by the Tarp loan... And they may well be right. But how is that any different than a situation where as:
1) I go to a Bank last year in June 2009.. and get a Credit line for $7 million for future operations of my Business
2) Bank gives me 'til June of 2014 to pay the Line off... with a hypothetical 3% interest rate to kick in 1 year after the initiation of the loan. (Think 0% interest for 12 Months)
3) The money sits in Escrow earning a interest itself.
4) I decide "WE DON'T NEED THE MONEY... We will pay it (the Principal) back today (April 21, 2010)...
with the interest earned (I think GM paid back 8% interest 
) during that 8 months... effectively wiping out the debt sitting on the books as an asset.