Besides the outstanding stock issue, Whitacre’s statement has arrived under fire from Sen. Chuck Grassley, R-Iowa, whom notes that the loans had been repaid perhaps not with GM profits (in reality, SEC filings reveal GM likely to have negative net cash flows within the fourth quarter of 2009) but instead from GM making use of a multi-billion-dollar TARP-funded escrow account.
“consequently, it really is confusing exactly exactly how GM together with management may have accurately established yesterday that GM repaid its TARP loans in almost any way that is meaningful” Grassley had written in a April 22, 2010, letter to Geithner. “the truth is, it appears to be like GM just utilized one supply of TARP funds to settle another. Continue reading ““The source of which was an equity capital center. That is fundamentally escrow cash, ” Barofsky stated.”