"F. George McDuffee" wrote in message
...
On Fri, 8 May 2009 11:42:25 -0700, "Hawke"
wrote:

Note that one of the 19 is GMAC which is now a bank [now wholly
owned by Cerberus]. GMAC is expected to play a key role is the
financing of both Chrysler and GM vehicle purchases and leasing,
but was heavily involved in sub prime lending under Diatech
Funding and ResCap [Residential Capital]. By all objective
standards GMAC is bankrupt, but is likely to get another big wad
of taxpayer cash.

GMAC is not owned by Cerberus. At one time it had more than a 50% stake in
the company but now it's ownership has been reduced to 9.9% as part of the
deal. So things are constantly in flux. As for more government money, that
may come. But if it means credit will keep flowing and it will allow
people
to buy, and more importantly, to finance new car purchases that will be a
good thing. Bottom line is that as bad as the financial situation was the
new administration is taking the necessary steps to fix the problems. But
no
matter how well they do it for some folks it will never be good enough and
they will never give them the credit they deserve. By the way, those folks
are called republicans and they are the people who created the mess Obama
has to clean up.
========
You can't tell the players with a program... Get your program
here....

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How could a government-run GMAC reshape car sales?
By KIMBERLY S. JOHNSON, AP Auto Writer Kimberly S. Johnson, Ap
Auto Writer - 1 hr 24 mins ago [08 May]

DETROIT - With the federal government almost certain to take
control of GMAC Financial Services, analysts suggest it could
become a loan machine that gives General Motors and Chrysler a
huge advantage over their competitors.

The company was one of 10 financial firms ordered by the
government to raise more capital after taking a stress test. In
GMAC's case, it needs $11.5 billion, and the most likely source
is the government itself.

A government-controlled GMAC would have the power to offer
low-cost loans to buyers of GM and Chrysler cars and trucks as a
way of steering business to the troubled automakers.

"GMAC could become the Freddie Mac and Fannie Mae of auto
finance. {Comment: Run, do not walk to the nearest exit.} It
would probably help sales of GM and Chrysler cars, but it also
increases the risk of taxpayer loss," said Bert Ely, a banking
consultant in Alexandria, Va.

"A very serious question is being raised about how the government
could use a GMAC to advance the fortunes of GM at the expense of
other automakers like Ford and Toyota," he said.

The Obama administration already owns 5 million shares of GMAC,
which it got in exchange for a $5 billion bailout loan. And
Treasury Secretary Timothy Geithner said Friday his department is
poised to offer GMAC more help. {comment: that's a thousand $US
per share folks, and the taxpayers' own it, *NOT* the Obama
administration...}

"We're going to provide substantial support to GMAC," Geithner
said. He said it was "likely" that GMAC will need more money from
the government, "and we'll be prepared to provide that."
{Comment: We? Does he have a mouse in his pocket? What he means
is that the taxpayers will provide more money, more or less at
the point of a gun, and that ain't investment, that's robbery or
extortion.}
snip
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For national security reasons, we need domestic auto manufacturers,
preferably ones that can, if they have to, provide powerplants etc. from
American plants. It also makes sense to spend relatively little money to
keep the US auto industry going even if it may eventuallly fail- right now
is not a good time for it to fold up.