I just scanned Institutional Risk Analyst’s latest post and it has two pretty interesting comments. One pertains to their projection for bank closures/consolidations and the other to GMAC. With regard to bank closures they point out that the small and medium sized banks have not had the benefit of the subsidies extended to the large […]
Posts Tagged ‘GMAC’
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GMAC, Government Ownership And Competition
Posted by Tom Lindmark on June 1st, 2009
Mind you I’m not saying this is going to happen, but the tussle between the American Bankers Association and GMAC over the deposit rates the latter is offering may be glimpse of things to come. The background on this one is that GMAC which is surviving on government funds is offering through Ally Bank, its […]
GMAC Says Government Will Own Them For Some Time
Posted by Tom Lindmark on May 22nd, 2009
It appears as if the government is in for the long haul with its investment in GMAC. In a filing with the SEC, GMAC said it could take up to 17 years for the government to divest itself of an up to 70% interest in the company. From Reuters: In a U.S. Securities and Exchange […]
GMAC Sucks In More Federal Dollars
Posted by Tom Lindmark on May 20th, 2009
The black hole also known as the auto industry is about to suck in some more of your money. According to Reuters, the Treasury Department is ready to commit an additional $7.5 billion to GMAC. You may recall that the stress test indicated that GMAC needed an additional $11.5 billion, so this looks like the […]
GMAC Set To Join The Government’s Portfolio
Posted by Tom Lindmark on May 11th, 2009
I didn’t think I would be writing this post so soon after the last one I wrote about Ford and the one I wrote last night about GMAC but here we are. The WSJ has a pretty satirical article about the likelihood of the government taking over GMAC. GMAC differs from other companies under the […]
GMAC: Stress Test Big Loser-Don’t Worry They’ll Do Fine
Posted by Tom Lindmark on May 7th, 2009
The biggest loser on the stress test was clearly GMAC. It needs to raise $11.5 billion in capital, which is about half of its current equity. Unlike the commercial banks, it has no earnings power — it lost $675 million in the first quarter. Yet per Tim Geithner and Ben Bernanke, none of the banks […]
GMAC/Chrysler Financial Merger: What’s The End Game?
Posted by Tom Lindmark on April 28th, 2009
The auto bailout/nationalization get weirder/scarier with each day. It seems now that plans are afoot to combine GMAC and Chrysler Financial. From the WSJ: The likeliest outcome is that Chrysler Financial’s loan portfolio will be folded into GMAC, which would then handle dealer financing for both General Motors Corp. and Chrysler, these people said. Such an arrangement […]
