Quote of the Day: GMAC Still Not A Bank Edition

Robert Farago
by Robert Farago

“It’s not a good situation, no matter what.” These bleak words come from Christopher Whalen, managing director of Institutional Risk Analytics [via compareshares.com.au]. Whalen is wailin’ on the impact of the Fed granting GMAC bank status, should the lender complete its debt-for-equity swap. And what’s up with that? The deal was supposed to be done by 11:59 last night. So far not a peep from GMAC, the Fed, Cerberus (who owns 51 percent of the troubled lender) or any of The Wall Street Journal’s people close to the people who need people are the luckiest people in the world. To paraphrase our own John Horner, uh-oh. Meanwhile, back to our notable quotable, who points out the blindingly obvious: “Christopher Whalen, managing director of Institutional Risk Analytics, said would-be customers are simply not buying cars. Noting that Toyota has just forecast its first operating loss in 70 years, Whalen sees no end to the slowdown… The difficulty many homeowners have had in paying mortgage bills has been spreading to credit cards and other forms of borrowing, including auto financing, Alpert said. ‘I don’t see that coming back anytime soon – people with impaired credit suddenly getting credit,’ Alpert said. ‘That, I think, is what has showed itself across the board with consumer spending.'”

Robert Farago
Robert Farago

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  • Geo. Levecque Geo. Levecque on Dec 28, 2008

    So did it become a Bank or not? inquiring minds want to know eh?

  • Npbheights Npbheights on Dec 28, 2008

    I read in the Palm Beach Post yesterday that they were approved as a bank and got 6 Billion or so. paper is at home... 5 minutes later... Just looked on Palm Beach Post.com, found nothing from yesterday. There is an article from the 26th online about the deadline passing but nothing about GMAC on the 27th Really weird. Could have sworn that I read that in the paper yesterday. I don't want to start any rumors.

  • Dougjp Dougjp on Dec 28, 2008

    This was supposed to close on Friday night and now its Sunday afternoon. Nothing? Doesn't sound like they are carrying through with their early Saturday promise " We have not yet issued final results but intend to in the near term." Its like a dark suspense novel, something's happening and its probably not good!

  • Guyincognito Guyincognito on Dec 28, 2008

    GMAC is a bank and its getting mucho billions, no matter what faux hurdles they are asked to overcome on the path there. Chrysler financial is next. As I said before, all your tax dollars are belong to Cerberus.