REPORT: GMAC gets another $7.5B from U.S gov't.
According to The Detroit Free Press, the U.S. Treasury has dumped another $7.5 billion into GMAC's coffers just two weeks after the bank was told by federal regulators that it needed billions in order to survive. In another government-backed boost, GMAC is now allowed to issue FDIC-insured debt. Both actions are reportedly designed to help restore faith in the damaged U.S. credit markets. Founded in 1919, and traditionally a longtime lender to General Motors dealers and customers, the government recently ordered GMAC to extend the same lending offers to Chrysler dealers and their customers. "This new arrangement with GMAC will help provide a reliable source of financing to both auto dealers and customers seeking to buy cars," said Treasury Secretary Timothy Geithner. Approximately $4 billion of the new infusion will support go to support dealer and retail loans for the Chrysler brand, while the remaining $3.5 billion is designed help GMAC address its capital needs in order to survive.
[Source: The Detroit Free Press]
Reader Comments (Page 1 of 1)
jinsei888 6:32PM (5/22/2009)
noooooooooooooooooooo!!!
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RAdZer0 6:47PM (5/22/2009)
I sure am glad my bank isnt called GMAC bank anymore. Since its seperate and all now. Im guessing the name change was expecting this.
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Sea Urchin 7:07PM (5/22/2009)
Don't open an account with Ally Bank
http://www.ally.com/index.html
That is the new name for GMAC, needless to say they renamed themselves.
This info is so fresh, it is not even on Wiki yet, so you heard it here first.
RAdZer0 7:17PM (5/22/2009)
I havent had any problems with GMAC bank. I have read alot of reviews with people having problems with them. The times ive called or done anything everything works out good. Of corse im just using a regular savings account, most problems i see is with verifying cd's and loosing out on rates.
Fernando 9:13AM (5/24/2009)
Yup, I have an account there but it won't be there for long! I'm actually going to close it in the next few weeks. I've not had terrible service from them (not any worse than Wells Fargo or Bank of America), but I just dislike them and don't want to give them my business.
Aprime 6:59PM (5/22/2009)
I wish I could spend money this freely.
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Jake 8:22PM (5/22/2009)
And after the govt. infuses GMAC with money, all us Americans will have to infuse the govt. with money.
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lilirishgirl 9:42PM (5/22/2009)
So will GMAC finally let me re-finance and get to a rate lower than 7.5% on my mortgage?
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Jeff Johnson 2:28AM (5/23/2009)
I miss the day's of real capitalism and free markets, you know the kind of market where if you sucked at your job you got straight up fired, or if you made idiot decisions your business imploded and melted into the shadows.
Seems the theme of the 21st century is rewarding stupidity on all levels.
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Jerry 9:59AM (5/23/2009)
It's amazing how much you have to spend to get people to finance cars that they just don't want. How much will we have to pay as American taxpayers for al of this 2-3 years from now??
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Iridium 11:22AM (5/23/2009)
GM as a total corporation has now taken $33 billion in taxpayer funds. They still need another $8 billion after June 1st.
$41 billion in taxpayer money to fund a bankrupt corporation. All that and people still want to buy GM cars. Every American should boycott GM forever and send the corporation into the ground.
If we do not kill GM, every major corporation will know they can do whatever they want and just get bailed out by the US government.
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jpm100 11:44AM (5/23/2009)
GM lost control of GMAC years ago. Its owned by Cerberus, Chrysler's former owner.
If it had been GM, it wouldn't have cut itself off from its own customers prompting GM to go had in hand to Washington as early as they did.
This money belongs in the Cerberus column.
Saxxon 11:24PM (5/23/2009)
Wait a minute,
Our dear leader, Obama, said recently in a CNN interview that the United States Government is OUT OF MONEY. BROKE. NONE. NADA.
http://www.drudgereport.com/flashocs.htm
I think if Autoblog wants to be fair, they should change the headline to "REPORT: GMAC gets another $7.5B from Chinese loans.
You know, the loans we will be paying off for generations to come.
All $1.85 TRILLION of it.
"Change we all need." My Ass!!!
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