Thread: GMAC Will Get More Bailout Money

GMAC Will Get More Bailout Money | Print | E-mail
Written by Charles Scaliger
Wednesday, 30 December 2009 16:00
GMAC Financial Services, the former financial arm of General Motors, is set to receive yet more federal bailout funds as the year draws to a close. According to a Reuters report, GMAC will get roughly $3.5 billion in additional federal government money to help cover losses on the mortgage market. Mortgage-related assets, considered the key to GMAC’s return to profitability, comprise roughly a third of GMAC’s total $178 billion balance sheet.

The bank has already received about $12.5 billion in bailout money, amounting to around half of the bank’s total equity. A government analysis (“stress testâ€

The Obama Administration takes ownership of GMAC
December 31, 7:07 AMSan Diego County Political Buzz Examiner Kimberly Dvorak

In the equivalent of a Friday afternoon drop for a story seeking minimal coverage, the federal government announced they would be sinking an additional $3.8 billion in aid to lending giant GMAC. This infusion of cash gives the federal government majority ownership in another failing loan industry company.

The Obama Administration is proving its intention and loyalty to the banking industry and the fat cats that run them by throwing more money into an industry that America once dominated.

The handout GMAC is taking from the taxpayers is $3.8 billion it is minor considering they took $12.5 billion from the government earlier this year. The Treasury Department said it would increase its company stock from 35 percent to 56 percent making Uncle Sam in charge of the failing loan company.

According to the government, four of the nine board members will be personally picked by the Obama Administration and GMAC will be required to pay $14 billion in loans in order to regain control of the company.

This will be the sixth company the federal government has taken over in two years. The others are American International Group (AIG), Citigroup, Government, oops General Motors, Fannie Mae and Freddie Mac.

“We said if you do not go raise capital from the private markets, if you are unable to, we will put capital into you because it is important to the stability of the system,â€