The federal government has already given GMAC – the lending arm of General Motors and Chrysler – more than $5 billion in emergency loans, and it looks as though the troubled lender is in line for more bailout cash. GMAC could receive as much as $7.5 billion from the federal government this week.
According to Reuters, the funds will come from President Obama’s package deal to shore up the nation’s financial institutions. The federal government ordered GMAC just last week to secure more than $13 billion in new capital.
“It’s likely, again, that GMAC will need to take additional capital from the government and we’ll be prepared to provide that,” U.S. Treasury Secretary Timothy Geithner told Reuters.
The United States government has already given GMAC $5 billion in direct loans, with another $884 million filtering in through loans given to General Motors. GMAC recently displaced Chrysler Financial as the lending arm of Chrysler which alone will require an additional $4 billion.
05/11, 10:32 AM
posted by:
CADDY-V
Fu*k it give them the money we all know by now it’s just numbers on paper. If we need to we can just ” print more “. So just make it an even 8B and move on.
05/11, 10:58 AM
posted by:
jdasch1
I think this “bank bailout” of GMAC is the worse idea of any bank bailout idea. GMAC now has a major advantage over Ford Motor Credit, Toyota Credit and all the rest. It would be great if all calls by the bank were the same and based solely on credit score and collateral rating…..but we all know that humans lend money and there in lies the grey area of banking. GM and Chysler not only have government ownership, now they have an unending stream of cheap, easy financing for their vehicles. Bottom line, government shoulld make Cerburus pony up matching funds, or take the bank into receivership and sell it off like all banks that fail. This bank will need help for years because of its risky loan base of GM and Chyrsler vehicles. Bailout Nation…alive and going broke.
05/11, 11:13 AM
posted by:
leftwingagenda
since post count matters to some people, let me add that the giant sucking sound you hear is all the money being pulled into the financial black hole that used to be the largest auto company in the world…grats GM! grats GMAC! enjoy the future tax increases you all shall pay to feed this beast…
05/11, 1:20 PM
posted by:
Impulsive
The US $ is dead. Buy gold.