ANOTHER $3.8 BILLION for GMAC

[Bluebear]

The federal government said Wednesday it will take a majority ownership stake in the troubled auto lender GMAC, providing another $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to stanch its losses.

The new aid package for GMAC, coming as most large banks are repaying the government, underscores both the problems afflicting the company and its importance to the Obama administration's efforts to revive the auto industry.

GMAC, which already has taken $12.5 billion in direct federal aid along with other forms of government support, is the largest lender to General Motors and Chrysler dealerships and to their auto-buying customers.

The Treasury Department said it will increase its stake in GMAC to 56 percent from 35 percent. It also will hold about $14 billion in what amount to loans that GMAC may eventually be required to repay. The government plans to appoint four of the company's nine directors.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/30/AR2009123002049.html?hpid=topnews

[grantcart]

1. I wonder what a majority of the outstanding loans that GMAC carries

would be worth, I assume that the stock is at penny levels.

[earth mom]

2. Wow-unbelievable. I'd like to hear what Michael Moore thinks of this.

:wow:

[Stinky The Clown]

3. Auto loans. Car Lender. Blah Blah Blah ...... how about REAL ESTATE SPECULATOR????

ditech, based in Costa Mesa, California,<1> is a lender, offering mortgages and lines of credit as a member of the General Motors family of companies, specifically General Motors Acceptance Corporation (GMAC) which purchased ditech from its private owner in 1999. The company's name is a portmanteau derived from the phrase Direct Technology.<2>

In late 2006, a controlling interest(51%) of GMAC was acquired by private equity outfit Cerberus Capital Management. As of 2008, ditech is part of Residential Capital, LLC (also known as "ResCap") which includes ditech and several GMAC-branded lending businesses. ditech opened in 1995 and is based in Costa Mesa, Orange County, California; several significant firms in the mortgage lending and mortgage brokerage industry are based in Orange County.

http://en.wikipedia.org/wiki/Ditech

Fucking vultures

[Nikki Stone1]

4. Ditech advertised constantly on KFI

I didn't realize they were GMAC.