Investigate This

[emilyg]

Wednesday, April 28, 2010
"Investigate this
Link to the Forbes column referenced below .... suggested reading.

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"Still Government Motors

Shikha Dalmia, 04.23.10, 03:40 PM EDT

GM is paying back Uncle Sam to shake him down for more money.

http://www.forbes.com/2010/04/23/general-motors-economy-bailout-opinions-columnists-shikha-dalmia.html?boxes=opinionschannellatest
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"Investigate this

Source Powerlineblog.com
April 28, 2010 Posted by Scott at 6:55 AM

"Last week General Motors chairman and chief executive officer Edward Whitacre took to the pages of the Wall Street Journal to make an important announcement: "The GM bailout: Paid back in full.". Whitacre asserted that GM had paid back all the funds it borrowed from the United States in full with interest.

Whitacre omitted two facts that rendered his column highly misleading. They are the kind of omissions that constitute securities fraud when made by a company in connection with the purchase or sale of a security or when a company reports its financial results.

If any investor bought GM shares based on Whitacre's column, it appears to me that the investor would have a good claim against GM. The SEC would in any event be warranted in taking a look at Whitacre's shenanigans on behalf of the company.

First, Whitacre omitted any mention of the remaining $50 billion or so that the government has sunk in the company's equity. Second, Whitacre omitted any mention of the source of the funds with which GM "repaid" the loan. According to TARP Special Inspector General Neil Barofsky, the


GM YouTube Commercial http://www.youtube.com/watch?v=jbXpV0aqEM4