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