Bailout Watch 131: GMAC Becomes Bank for Bailout Bucks
The pushing and shoving at the bailout trough continues, so say the usual unnamed sources. Reuters reports that moves are afoot to change GMAC’s legal status to a “bank holding company.” (This is the same sleight-of-hand Goldman Sachs used a few weeks ago to curry taxpayer favor.) Bank holding companies participate in the FDIC, which makes them eligible for capital injections under King Henry the Paulson’s solid-as-a-jellyfish $700b rescue/bailout plan. Rumor has it that Chrysler Financial would also be dumped into GMAC and the resulting company would be “a financial services company that would offer services including auto loans, interest bearing accounts and credit cards.” Yeah, just what we need: FDIC insured checking and savings accounts at GMAC. This is one of those nightmares from which I just can’t seem to wake up.
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Hate to break it to you, but GMAC Bank already exists and takes insured deposits. They've been running CD specials for a while now to attract deposits. www.gmacbank.com
At what point in the earnings call will the GM brass address the crisis at hand? In the Q&A? Wouldn't hold my breath. In the spirit of Robert's " Light at the End of the Tunnel?" piece,is this the"Five O'Clock Follies" re-badged for MoTown?