GMAC to receive another bailout of $3.8 billion from U.S. government
You have to pay for these 0% APR car financing deals and GMAC found the perfect way, the U.S. taxpayer. It wasn’t enough to bailout GM to save American jobs but now we have to make sure their is financing for these cars even if there is not the demand for them compared to other automakers. How long until we finally let the market forces take their course and let the weak players fail or be taken over?
That means GMAC, like AIG, will get more aid from taxpayers, even though the prospect of repayment is on the wrong side of uncertain. Unlike AIG, GMAC was a disaster before the financial crisis’ darkest days. It finished 2006 losing money. In the third quarter of 2007 GMAC lost $1.6 billion, mostly on bad loans made by its residential mortgage arm. It lost $767 million in the third quarter of this year, $3.9 billion in the second quarter and $675 million in the first.
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GMAC set to get an additional $7.5 billion in bailout next week
Surprise, surprise. Who would of thought that we would give more bailout money to GMAC (sarcasm)? Looks like GMAC needs another $7.5 billion in our hard earned tax dollars to provide low cost (or no cost) financing for more American made cars that people don’t want to buy.
If we are going to support our native automotive industry, it would be nice if we made them make cars and trucks are more viable in our current economic environment. What is even more interesting in this press release, is that our Treasury Secretary said that he thinks GMAC will need even more bailout in the future and he has determined we are ready to give it as needed…..period.
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GMAC gets closer to becoming a commercial bank - yawn
When did it become critical that people can buy a new car every year? I am just astonished that we are letting a car financing unit become a bank just so they can get access to our taxpayer funds. Mainstreet has been left in the cold and all we seem to care about is all the fat cats that did not make prudent choices to retain money for the bad times that always come. What direction are we trying to go, backwards or forwards?
News:
GMAC LLC investors holding about $10.5 billion of bonds agreed to sweetened terms of a debt swap, bringing the auto and home lender closer to its goal of becoming a bank and getting a federal bailout.
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GMAC hasn’t met conditions to convert to commercial bank status
The Fed’s actions in the treasury market is really sucking out much of the extra liquidity out of the market as people are using it as a flight to safety in these uncertain times. It is no surprise that the private markets could not come up with the $30 billion needed to give GMAC the capital they needed to met their obligation under commercial bank status.
News:
GMAC LLC, the auto and home lender seeking federal aid, hasn’t obtained enough capital to become a bank holding company and may abandon the effort, casting new doubt on the firm’s ability to survive.
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GMAC applies for status as commercial bank and begins debt swap
GMAC has applied for status as a bank holding company so it can get access to the Treasury’s $700 billion rescue fund for the financial industry.
The lender also began an exchange offer for $38 billion of notes issued by the company and its Residential Capital LLC home lending unit to reduce outstanding debt levels, Detroit-based GMAC said today in a statement.
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GMAC has $2.52 billion loss and ResCap unit may go bankrupt
With continued losses and the real estate market still falling until it finds a price level that stabilizes. Thiis type of news will continue to be in the news until the excessive leverage is worked out of the system. With the continued losses at GM, I don’t see this unit getting any additional funding from the parent. Last I heard, they were trying to get classified as a bank so they will be eligible for bailout funding. I think that is a mistake if it happens and they should fail like any other company that got too aggressive and now are in dire straights.
News:
Finance company GMAC LLC lost $2.52 billion in the third quarter, hurt by slumps in the housing and auto markets, and said its Residential Capital LLC mortgage unit may fail.
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GMAC ie: Capmark Financial Group REO Properties
This is the Capmark Financial Group and partially owned by General Motors. On March 23rd 2006 a private equity consortium including KKR, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC, GM’s commercial mortgage arm. The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group.
Their REO database search is very basic. Interesting, at the time of this writing we did not find in listings in the “West Coast” region. We did however find residential and commercial properties listed, even one on a golf course. Most of the listings are of high value that is shown in there 7 figure prices or a “contact broker” message.
The listings have a decent amount of information and with nice photos. They have even map linked them to find out the area they are located in.
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