Wednesday, October 28, 2009

GMAC to Geithner: We Need More Green

Distortions of the economy continue, with huge government money going to the politically favored. Again, GMAC Financial Services Inc. and its sponsorship as a most favored firm, by unions, is front and center.

GMAC and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, according to WSJ.

The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital on top of the $12.5 billion that GMAC has received since December 2008.

In addition, WSJ reports that the FDIC told the company Tuesday the agency will guarantee an additional $2.9 billion in debt.The FDIC backed $4.5 billion in GMAC-issued debt earlier this year.


1 comment:

  1. I see an amazing new comedy in this: The Money Pit II.....Tom Hanks plays an inept congress man who takes a line-job at GM to protect and oversee the "investment" at first he can't quite install a seat in a Avalanche but after a montage where he "makes it rain" in the board room and smokes cigars with union leaders the movie ends with a slow-mo shot of him walking away from a burning GM plant countin' Benjamins from the insurance money while "Damn if feels good to be a gangsta" plays into the credit roll.