GMAC Fails Stress Test: There Goes Another $11.5 Billion of Your Money

by Robert Farago

May 6th, 2009 9:08 PM

gmac fails stress test there goes another 11 5 billion of your money

Hey, he warned us. When the president announced Chrysler’s C11, he mentioned in passing that the feds would provide GMAC with “fresh funds” to take over ChryCo dealer and retail financing (from Chrysler Finance). Well, Uncle Sam’s gonna need to back-up a dump truck to git ‘er done. Bloomberg reports that the former lender (now bank) will require an $11 billion “top up” just to not go tits up. That’s after a last-minute, rule-changing $5 billion infusion (plus $1 billion bestowed upon GM to help them help GMAC). And before The Presidential Task Force on Autos figures out how much more money GMAC needs to finance customer purchases and keep Chrysler dealers solvent. Ah, but do they want to avoid dealer death? As we’ve reported previously, GMAC has been busy pulling financing from selected GM dealers—an end run around GM’s franchise agreements designed to avoid the threat of dealer lawsuits against the mothership for termination. Can we expect the same for Chrysler dealers? Already happening.

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Landcrusher on May 06, 2009

And which one of the President's involved followed the fiscally conservative ideology? Neither. Just wanted that one on the record. I don't always go with the conservative line, but when it comes to government spending it seems to be right most of the time.

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GS650G on May 07, 2009

Can I declare myself a bank and get a few million over here?

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Geeber on May 07, 2009
jkross22: Yes, El Presidente Bush got the ball rolling, and rather than showing a break from the past, Obama has chosen instead to spin the wheel faster. It's amazing how "hope and change" has really turned out to mean, "more of the same, only with a president who is more articulate and has better abs." And how many of the posters defending President Obama's actions would be squawking about "corporate welfare" if a Republican president did this? If nothing else, the last few months have been somewhat amusing, at least for those of us who actually take the time to remember what the candidates were saying during the 2008 campaign.

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Tommy Jefferson on May 07, 2009

For as long as I live these bloated American welfare queens will NEVER seen a penny of my money other than what the I.R.S. takes for them.

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