Have you heard? General Motors has repaid its TARP (Troubled Asset Relief Program) loan – - in full, with interest, and five years ahead of schedule! This according to Ed Whitacre, Chairman and CEO of GM, appearing over the weekend on every major television network, urging Americans to give GM another look. TV spot
The White House has parroted the good news in speeches and releases, seeking vindication for its grossly unpopular decision to wipe out GM stockholders, severely cut back bondholders, give the unions a 26% share and Canada 12%, and retain 61% for itself. Biden called the GM payment a “huge accomplishment.” Hallalu…oopsie.
On Thursday, Iowa’s Senator Charles Grassley (R) exposed the inconvenient truth, that GM and the Obama administration are misleading taxpayers about GM’s loan repayment. In fact, the unprofitable company repaid the TARP funds simply by invading a separate pot of bailout money sitting in an escrow account – not by selling cars as GM and the administration claim. TARP Special Inspector General Neil Barofsky has corroborated Senator Grassley’s accusations.
The Federal Trade Commission may also have something to say about the TV spots. FTC’s truth-in-advertising laws prohibit ads that are “likely to mislead consumers.”
My take? Business as usual, with the administration propagating falsehoods and half-truths to garner public support. Corruption at its core.
Amy H Laff is a StateBrief.com partner. A graduate of Univ of Penn and Stanford Law School, Amy practiced law and mediation on the east coast before relocating to the Valley, where she founded and chairs the AZ chapter of the Republican Jewish Coalition. Amy makes frequent media appearances, including AZ Law Channel and Tony Katz Radio Spectacular. Additionally, she works with companies and candidates on branding and communication. 
