Bailout Watch 576: Whitacre Keeps GM's Payback Lie Rolling
“We intend to pay the debt,” GM’s CEO Ed Whitacre told reporters yesterday. “We’ll be finished by June.” Except that nothing has changed since we determined that GM is “taking taxpayers for a ride.” Here’s what he should have said:
By June we intend to return a small percentage of the taxpayer assistance that rescued this company from sure liquidation. GM will need to achieve an unprecedented market cap valuation at an eventual IPO in order to truly repay taxpayers for this second chance, and I will not rest until we clearly and honestly achieve that goal. Until that day comes, please refrain from printing misleading headlines like ‘GM To Repay Loan By June,’ as these imply that we are able to make the taxpayers whole when, as an unprofitable company, we have no such ability. Thank you.
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