Something tells me that they will eventually qualify by using some very interesting math formula that no one will ever understand.
Except for THIS guy!...............
Posted on 12/29/2008 12:27:49 PM PST by Abathar
NEW YORK – The financing arm of General Motors Corp. remained silent Monday on whether it had raised enough capital to become a bank-holding company and eligible for access to billions in federal bailout money.
Analysts have speculated that if GMAC Financial Services LLC doesn't obtain financial help it would have to file for bankruptcy protection or shut down, which would be a serious blow to parent GM's own chances for survival.
GMAC had received the Federal Reserve's approval to become a bank holding company last week, but the approval was contingent on the auto and home loan provider raising at least $30 billion in regulatory capital. The company had been attempting to raise the needed funds through a complicated debt-for-equity exchange that expired at 11:59 p.m. EST Friday.
(Excerpt) Read more at news.yahoo.com ...
Something tells me that they will eventually qualify by using some very interesting math formula that no one will ever understand.
Except for THIS guy!...............
My suspicion is that they aren’t talking because bankruptcy is imminent.
Huh... they just bought my mortgage a few months ago. This could be interesting...
No one is more deserving of bankruptcy/financial woes or any and all difficulties the world can possibly provide than GMAC. Its arrogance is matched only by the rest of GM and the entirety of our congress.
Everyone responsible for the situation is going to get bailed out. It’s great to reward irresponsible behavior.
It’s a cluster f*** of irresponsibility. Sigh.
They did qualify last week? It was all over the news.
If bad investments survive, we will all suffer.
Excerpt: (bolding mine)
The Federal Reserve's decision to make GMAC LLC a bank-holding company throws the unit a desperately needed lifeline, but further entangles the federal government in areas of the economy it once considered beyond its purview.In a Christmas Eve decision, the Fed allowed GMAC, a finance company controlled by private-equity fund Cerberus Capital Management and General Motors Co., to qualify as a bank. As a federally regulated bank-holding company, GMAC potentially gets access to billions of dollars of Treasury funds dedicated to recapitalizing banks.
Bloomberg this morning has GMAC getting $6 Billion from the Treasury.This is in addition to the 13.4 Billion that GM got.
Did they? This will be only the first handout I’m afraid.
After looking at all the numbers we will be at least two years carrying them now - in for a penny, in for a pound...
They’re “relaxing” their lending rate as well.From a score of 700 to 621.I guess they don’t need to worry so much about getting repaid,since it’s not their money they’re lending.
I heard that too, do people actually understand what got us into this mess in the first place?!?!
Demand a cosigner or a large down payment like they did for decades, they never had a problem back then did they?
Still, having a backer here is no difference than Freddie or Fannie during the run-up to this disaster, with the same results IMHO.
Being as Charles Schwab had this as a "survivors benefit" scenario - but only in the Trust, not the IRA, I took that as a 50K IRA distribution, and moved it to the parental Trust. Paid taxes on the excess distribution, but got most of it back the next year....whew.
And, yes, when Dad died last year, Mom got face value.
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