Grassley Slams GM, Administration Over Loans Repaid With Bailout Money

General Motors says it has repaid its loan from American taxpayers, and Obama says that proves the bailout was a success. But wait! Now we learn that GM paid back the first bailout with money it received from a second bailout. None of it came from car sales – so the whole thing is a con game to fool the public. -- G. Edward Griffin

FOXNews.com

April 22, 2010

A top Senate Republican on Thursday accused the Obama administration of misleading taxpayers about General Motors' loan repayment, saying the struggling auto giant was only able to repay its bailout money by dipping into a separate pot of bailout money.

Sen. Chuck Grassley's charge was backed up by the inspector general for the bailout -- also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.

"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.

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