Report: GOP argues GM loan payoff just a TARP money shuffle

While General Motors is busy making marketing hay from its early payoff of $5.8 billion in loans, Senator Chuck Grassley and House Representative Darrell Issa aren't buying it. "It looks like GM merely used one source of TARP funds to repay another," said Grassley of General Motors financial moves. Grassley has asked for justification of the creative money-shuffling from Treasury Secretary Timothy Geithner.

Meanwhile, Representative Issa is looking at the new fuel economy standards that went into effect last month. Documents about the negotiations leading up to the 35.5 mpg standard have been requested from GM, Ford and Chrysler, as well as Toyota, Honda, Nissan, Suzuki, Volkswagen and BMW. Issa contends that the standard only passed because GM and Chrysler were put in a hammerlock and forced to agree in exchange for bailouts.

[Source: Detroit Free Press]

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