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After an accusation by Senator Charles Grassley that GM repaid its federal loans with federal funds, in effect running a shell game, the U.S. Treasury says not so.

Ed Whitacre may be really happy about General Motors paying off its federal loans ahead of schedule, but Iowa Senator Charles Grassley (can we call him 5.6 Billion Buck Chuck?) is not impressed.

The senior Republican on the Senate Finance Committee is calling BS on GM...alleging a shell game in which GM used TARP funds instead of its own earnings to pay back Uncle Sam.

GM and the Treasury Department are denying it. Full story at Automotive News. 

In fact, Whitacre says when it's all said and done, the US will get back its entire $50 billion investment in GM and may even make a profit. Details at The Detroit Free Press.