GM Announces It Will Pay Back Gov’t Loan … With Gov’t Money
GM will be begin paying back the TARP money in December, the company announced this morning. It’s a statement in need of a little context. Basically, GM will be using a portion of its $50 billion in TARP bailout money it received to in turn repay another portion of the TARP loans. The reason GM can do this is because when GM emerged from bankruptcy, it struck a deal with the Treasury Department to carve up its obligation to the government in four different ways. They are, briefly: 1) $986 million remained an obligation of the old GM, the husk...
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Tags: Bailout, Bankruptcy, Different Ways, Gm, Husk, Loans, Money, Obligation, reason, Treasury Department, X85, X92