Feds to give GMAC another $3.5 billion

Feds to give GMAC another $3.5 billion

www.msnbc.msn.com

GMAC Financial Services is expected to receive $3.5 billion more in federal aid to further stabilize the lender, The Wall Street Journal reported Tuesday.

The announcement is expected within days and would coincide with GMAC taking more steps to absorb losses related to its mortgage operations, the newspaper reported, citing people familiar with the situation.

GMAC, which is based in Detroit, has received $12.5 billion in taxpayer money and is 35 percent owned by the federal government.

(visit the link for the full news article)

Hear is a happy pice of news years for all of us. Ok GM is getting another three point five billion USD. So does everyone here think that is a good thing or a bad thing? GM is now thirty five percent owned by the government. The article goes on to say that GM was required to raise eleven billion or so to help get its self out of debt, it failed to reach that goal. So will GM be able to become profitable, and have even the slightest chance of repaying the tax payers?

www.msnbc.msn.com
(visit the link for the full news article)

Outrageous isnt it? This is why thier shuold be violent protests..not hurting people, but dooing os much financial damage4 to the bank itself, they wil have to move overseas. nice to see our governemnt will bail the dow down outta the red, but leave all us taxpayers to rot n strarve. this is just like king of england, aka king george, and other tyrant kings..take and take from the peasants, to give to themselves* People better wake up, become aware of whats going on around them, or become a willing part of the machine*
Wish i could email the FED lol, and say " hey! thats MY money i didnt say its ok to give it GMAC" i wantit back now..even if ts 50 cents* imagine if all the taxpayers got together in this country and demanded thier money back form this? that would be VERY interesting

reply to post by RedGolem

Sure give them more, whats a few more billion on top of the 57 billion they were already given.

A Chinese-owned GM, it could happen

WTF!? I thought GM was supposed to be PAYING BACK their federal loan by the end of June, according to this article!!!

www.bloomberg.com...

Dec. 15 (Bloomberg) -- General Motors Co., the automaker that restructured in a 40-day bankruptcy, plans to repay government loans by the end of June, Chief Executive Officer Ed Whitacre said.

The automaker owes the U.S. $6.7 billion and Canada $1.14 billion out of $50 billion in government aid. The loans have a scheduled maturity of July 2015. GM, 61 percent owned by the U.S., doesn’t have a timetable for public trading of its shares, Whitacre told reporters at a roundtable in Detroit today.

So instead of repaying, they're TAKING MORE??? Screw this greedy, incompetent company. I will never-ever buy from them again and I'm encouraging everyone I know to boycott them as well for contributing to our nation's economic failure!!!

Folks, GMAC is NOT GM! GMAC (General Motors Automotive Credit) is considered a bank and is a subsidiary of GM. This $3.5B has nothing to do with the billions already provided to GM and is in addition to it! Also, the 35% ownership of GMAC has nothing to do with the federal government's owning interest in it's parent company, GM. The way this is reported is designed to confuse you and hide the abomination that is occuring here. I say that all of these companies shoudl be aloowed to fail! The sooner, the better!

GMAC lost big in the mortgage business, but and it’s a big but if you let it fail most GM Dealers use it as a source of financing for the cars that they are purchasing from the factory. The moment a vehicle runs off the assembly line and a Vehicle Identification Number is attached to it the Franchise Dealer that ordered it has to pay General Motors for it. Most dealers approximately 80% borrow funds from GMAC to do that, and then are required to pay off that loan plus accumulated interest once they retail the car to a customer.

This process called floor planning is a service few traditional banks offer and then only to Dealers who have substantial deposits with that bank and a healthy bottom line. Toyota lost more money than GM this year and the market for cars is weak because of lending conditions more than it is desirability.

If GMAC goes broke only about 25 percent of the dealers currently using it for floor plan lending would have any chance at securing that financing elsewhere to maintain their inventories. The ones who could not find the floor planning elsewhere would go out of business as they would be unable to pay the factory for the cars they were ordering.

A substantial number of Dealers going out of business would lead to either further layoffs and losses at GM or it closing down all together, eliminating in the process any chance of the tax payer recouping its investment in GM.

Please keep in mind, it wasn’t too long ago that GM was a bigger employer than the Federal Government itself.

It has paid trillions of dollars of taxes over the year to the government and its employs have paid billions of dollars in taxes over the years to the Federal, State and Local Governments. Interpret that as you will but from Governments to Charities to Workers to Taxpayers everyone will loose if GM goes down.

Say it with me now!

-- No More Bail outs
No More Bail outs --

This is nuts. Have we completely forgotten that this is OUR government not theirs? These people are not supposed to be able to do this to us, they are our servants and they are taking control of the future with tax for corporate benefit.

This is appalling