GM Financial Double Crosses Their Ally

By the way, has GM sold their stake in Ally? My impression was that Old GM's stake + New GM's stake added up to around 10%.

THE PEOPLE WILL BE THE BIGGEST LOSER!!!! Not Ally Financial. The US Treasury has more than $11 billion invested in Ally from the bailouts. Remember now, Cerberus owns a large part of Ally. The same Cerberus that bought Chrysler for Chrysler Financial. They separated the two companies, and were able to keep Chrysler Financial through the bankruptcy and even though Chrysler owed the $12 billion in tarp funds. Cerberus later sold Chrysler Financial for the $7billion it bought Chrysler for. Now they hold a large stake in Ally still, and once again the US Treasury is babysitting their investments for them, and will make sure they don't lose any money. From the wiki: In 2006, General Motors Corporation sold a 51% interest in GMAC to Cerberus Capital Management, a private equity company. (The next year, Cerberus acquired Chrysler Corporation.) Also in 2006, GMAC divested a majority stake of GMAC Commercial Holdings, its real estate division, to a trio of investors — Goldman Sachs, KKR and Five Mile Capital Partners — thereby creating Capmark Financial Group Inc.[6] Capmark later filed for bankruptcy and was acquired in part jointly by Leucadia and Berkshire Hathaway.[7][8] On December 29, 2008, the United States Department of the Treasury invested $5 billion in GMAC from its $700 billion Troubled Asset Relief Program (TARP). On May 15, 2009, GMAC's banking unit changed its name to Ally Bank. On May 21, 2009, the U.S. Treasury announced it would invest an additional $7.5 billion in GMAC LLC, which gave the U.S. government a majority stake in the company.[9] On December 30, 2009, the U.S. Treasury department said that they would invest another $3.8 billion in GMAC because the company had been unable to raise additional funds in the private sector. This raised the total government investment in GMAC to $16.3 billion.[10] On May 10, 2010, GMAC Inc. announced that it re-branded itself as Ally Financial Inc.[11] On December 30, 2010, the U.S. Treasury announced it would be converting $5.5 billion of interest-bearing preferred Ally stock into common equity.[12] On March 31, 2011, Ally Financial filed with the SEC for an initial public offering, although was not pursued due to stock market volatility of summer 2011.[13] On November 9, 2011, the bank announced it was considering filing for bankruptcy-protection for its ResCap mortgage unit, after the unit's loan write-downs of around half a billion dollars brought it close to the legally required net asset value threshold of $250 million.[14][15] As of January, 2012, TARP had about $12 billion invested in Ally.[16] The government stake represented a 74% ownership interest in Ally. In March, 2012, Ally failed the Federal Reserve's so-called financial "stress test" for capital adequacy. The company said in a statement that the Fed's “analysis dramatically overstates potential contingent mortgage risk”. A possible outcome would be a requirement to raise additional capital.[17] On May 15, 2012, the company put its ResCap subsidiary into Chapter 11 bankruptcy after it failed to make an interest payment of $20 million on unsecured debt. ResCap had written off $22 billion in mortgages in 2009, 2010, and 2011 much of it subprime mortgages. The move was seen as attempt for the company to focus on its profitable core business of auto loans and direct banking (Ally showed a $2.72 billion profit in 2011 in its auto finance unit but had a $402 million loss at ResCap).[