A few months back in April, General Motors put out an advertisement on television that stated the loan bailout they received in the amount of $50 billion from the American government had been paid back in full and also in advance. After this commercial was put out the Obama Administration would come out to back the ad in press releases and speeches. But, little by little, truth started coming to light by people that were working closely with the whole loan and also by people that worked in the American and Canadian 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.”
After some investigation of what the “payback” really was it turned out that not only had GM lied when they said they paid back the government in full. But, that they had also tried to lead the public to believe that the money they used to pay the government back was money that they made by selling cars and making profit which was also not true. The money was taken from an escrow account that the government gave the company when they were in bankruptcy. “As it turns out, the Obama administration put $13.4 billion of the aid money as "working capital" in an escrow account when the company was in bankruptcy. The company is using this escrow money—government money—to pay back the government loan.”
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