Confirming earlier reports, the United States Treasury Department has given GMAC another $7.5 billion in emergency loans. The latest round of bailout money is expected to go towards the financing of General Motors and Chrysler vehicles as well as shore up some of the company’s capital shortfalls.
About $4 billion of that loan will go toward vehicle financing while the remaining $3.5 billion will help the lending firm cover some of its capital shortages. The federal government ordered GMAC to secure $9.1 billion in new capital earlier this month to cover its shortages, but it remains unclear where the remaining $5.6 billion will come from.
The Treasury’s latest investment will not give it a common equity stake in GMAC, but a previous loan of $884 million could. The Treasury says it will exercise an option to transfer its $884 million loan to GM into common equity in GMAC “in the very near future”, according to Automotive News. That loan should give the Treasury a 35.4 percent stake in the lending firm.
The latest loan comes on top of the Treasury’s $5 billion loan back in December.
05/22, 10:24 AM
posted by:
Struggle
Can you say ‘Triage’?
Wow.
05/22, 10:27 AM
posted by:
shane train
Oh yeah no biggie. Just “floating” them another helper, huh?
05/22, 10:29 AM
posted by:
mayer_ray_nagin
So what are we up to now for GM and GMAC? About 60 billion? more? less? Has anyone kept count?
05/22, 10:47 AM
posted by:
Struggle
Still a drop in the bucket compared to the banks.
05/22, 10:58 AM
posted by:
johnnycanuck
Lol mayer_ray, that was exactly the first thought that popped into my head. It’s like free bar peanuts. Just grab a handful and when those are gone hey, no problem, theres a whole sack in the storeroom.
05/22, 11:01 AM
posted by:
Borat
Yep, the sack is called Treasury and it is fueled by taxes.
05/22, 11:05 AM
posted by:
hangonbig3
There is a word in this that seems to make a difference…. (LOAN)….. If they pay it back with interest, will you still complain about it.
05/22, 11:07 AM
posted by:
shane train
hangonbig3- Like Chrysler? Who said “ehhhhhhhhh, we probably won’t pay it back. but thanks.”
05/22, 11:31 AM
posted by:
greg
GMAC is 50% owned by the same idiots that own Chrysler – Ceberus and Bob Nardelli.
05/22, 11:42 AM
posted by:
Lariat Luxury Locomotive Liner No.3
Nothing more that a US taxpayer ankle-grabbing exercise in extortion. Pay the money back? What a laugh!
05/22, 12:59 PM
posted by:
mayer_ray_nagin
Hangonbig3, didnt the feds just “forgive” 15.3 billion in GM “loans?” Why yes, they did. As such, they arent paying it back, with or without interest.
Get a clue – this is more welfare for Obama Motors. I had thought about getting a Camaro before all this, but now the only domestic I will consider is Ford. No government shiiiiiit.
05/22, 1:38 PM
posted by:
RaineMan
Quit deluding yourselves people… none of these loans will ever be repaid. It’s a free-money giveaway for the rich brought to you by hard working honest taxpayers like you and I.
05/22, 2:37 PM
posted by:
atoms
and people thought 1 billion to fix the hubble space telescope was a lot of money…
05/22, 10:02 PM
posted by:
johnnycanuck
Turds also float. I wonder which is easier to flush?
05/22, 10:14 PM
posted by:
jdasch1
Why is everyone still calling GMAC, GMAC? Its now ALLY BANK. Last Friday they changed their name to hide who they really are from…F’ing Mars!! Big joke of a bank. Bailout nation alive and broke…
05/26, 3:23 AM
posted by:
fan
this is becoming SO ridiculous… why dont they grant GM a direct bank collection to the treasurys accounts? or, even better, to all bank accounts in the US?
Have the collection cloaked, too, so noone can ever proof they took the money and claim afterwards they survived on their own?