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Posted on 11/20/2008 6:22:12 AM PST by Zakeet
The cash-strapped financier, 49%-owned by General Motors Corp. (GM), also announced offers to exchange $38 billion in notes from GMAC and its Residential Capital home-lending business for new securities with the same maturity dates and interest rates. The move would cost GMAC up to $2.5 billion in cash, it said.
As a bank-holding company, GMAC said it would obtain "increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses." New avenues of potential funding include the Fed's discount window, where banks can get inexpensive, short-term emergency loans.
Two weeks ago, in a stark acknowledgment of the deteriorating health of mortgage business Residential Capital, GMAC said ResCap has had difficulty maintaining adequate capital and liquidity levels and raised doubts about ResCap's ability to remain viable.
A consortium led by private-equity firm Cerberus Capital Management LP, parent of Chrysler LLC, bought 51% of GMAC in 2006 for about $14 billion.
(Excerpt) Read more at money.cnn.com ...
Interesting. I recently refinanced through Quicken Loans and GMAC bought my mortgage from them. Now they’re crying that they need money? And yes, I do pay all my bills on time.
Can’t wait to get my electric VW. When gas is .98 cents a gallon. What a bunch of retards.
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I’m holding some GMAC bonds that don’t mature until 2017. Any idea what this all means to current bond holders?
This morning, Regular Unleaded is 1.69 / gal. here. You think it will go below a penny a gallon huh? ;-)
(I'm guessing you meant 98 cents or $0.98 per gallon)
I hear GMAC advertising locally and I thought they were paying 12% on deposits. Could that be right? Our Church had a bundle in GMAC and I convinced the Council to pull most of the money out last year and do a addition to the Fellowship Hall. With a large donation from a widow we were able to pay cash...
The morons want us to get windmill autos when the gas price is through the floor. They are insane.
GMAC has been in the household loan business for a long time.
We have refied our home with DiTech twice, and they were great people to deal with.
Several of our younger relatives have used DiTech with excellent results.
I wouldn’t own a GMC vehicle, but being a long time customer with DiTech has been good for us, our relatives and friends.
Funny.
We have our mortgage through GMAC and I remember one of their selling points was that they don’t sell off their mortgages to other companies as much as other lenders. I guess we’ll see!
On the face of it, it sounds bullish for bonds. I hold some 2018 bonds that my broker shows a value of under 20 cents on the dollar. I don’t know if that means I could buy them anywhere near that price but that is probably all I would get selling them.
Lowest gas is $1.68 in MO, today.
I know GM, etc., tanking is going to hurt our economy, but I’m SO ready to burn various “institutions” to the ground and start over again.
What’s the reason the Big Three can’t just file Chapter 11 or 13, reorganize, downsize, streamline, tell Congress to f-off and start all over again? (I read the reason somewhere, but can’t remember why?)
A friend of mine has a GM car and got an e-mail yesterday telling her that they’re just looking for a “loan” from Congress (IOW: YOUR TAX DOLLARS!) not a “bailout.”
How stupid do they think we are? Pretty stupid, I guess, LOL!
Obviously th market is betting on bankruptcy.
Part 2 of that question is really easy. They don't qualify for Chapter 13 - for multiple reasons.
The qualifications for a Chapter 13 debtor are in Chapter 1, not Chapter 13 of the bankruptcy code (109(e))
"Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000, or an individual with regular income and such individual’s spouse, except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts that aggregate less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000 may be a debtor under chapter 13 of this title."
Thank you! :)
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