• Apr 29th 2010 at 10:00AM
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General Motors didn't use another government loan to pay off the much-celebrated $4.7 billion portion of its federal debt. According to a spokesperson with the Treasury Department cited by Bloomberg, the Detroit-based carmaker properly used funds from an escrow account to do the deed. The funds were available for the automaker to use in the event that it ran across any extraordinary expenses, but since the manufacturer decided it didn't need the money, it paid it back.
Despite the fanfare surrounding GM's repayment of a portion of its federal loans, some critics accused the company of using other government money for the payoff. Specifically, Senator Charles Grassley, the top Republican on the Senate Finance Committee, accused the automaker of performing a "TARP money shuffle" as a public relations stunt. Treasury Assistant Secretary for Financial Stability Herbert M. Allison disputed Grassley's claim in a letter on Tuesday.

[Source: Bloomberg]

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