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Panel: GMAC won't repay $6.3 billion of bailout

Detroit Free Press -- The congressional panel overseeing federal bailout recipients estimates GMAC will never repay at least $6.3 billion of $17.2 billion in taxpayer aid and called on the Treasury Department to demand GMAC take drastic steps -- including a possible bankruptcy for its troubled ResCap mortgage lending business.

The panel, chaired by Harvard Law School professor Elizabeth Warren, also urged Treasury to give taxpayers more frequent and detailed information about GMAC's condition, demand a business plan from GMAC and consider merging the lender with its former parent GM.

As part of the bankruptcy restructurings of GM and Chrysler, Treasury wiped out the companies' common stock and, in Chrysler's case, forced bondholders to take about 29 cents on the dollar for the company's debt.

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Submitted Mar 12, 2010 By: dwgt.net

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cpl11787 All-Star Author Minnesota Posts:630 Points:123,275 Joined:Jan 2010	Message Posted: Mar 13, 2010 7:40:22 PM Ignore cpl11787 Report Abuse if they needed to borrow 17.2 billion dollars something is definitely wrong.
kelsielee Champion Author Atlanta Posts:3,389 Points:667,550 Joined:Sep 2008	Message Posted: Mar 13, 2010 7:04:31 PM Ignore kelsielee Report Abuse Another sign of the continued problems with real estate and mortgages (since the ResCap piece of GMAC seems to be the one bringing the company down).
TheDix All-Star Author Ontario Posts:619 Points:116,740 Joined:Dec 2009	Message Posted: Mar 12, 2010 3:43:51 PM Ignore TheDix Report Abuse Give the C.E.O.a Toyota for Christmas instead of cash.
orestroker All-Star Author Portland Posts:655 Points:708,295 Joined:Mar 2008	Message Posted: Mar 12, 2010 1:17:06 PM Ignore orestroker Report Abuse If I could just get a few people to forgive about $250,000, I could...
Amplion Champion Author Oregon Posts:1,543 Points:893,945 Joined:Sep 2005	Message Posted: Mar 12, 2010 12:00:47 PM Ignore Amplion Report Abuse GMAC is a sinking ship of pirates ! Attempts at Bailout are a total waste of our Tax dollars. It would have been better to give that money to honest folks to help with their mortgage payments.
WillCody Champion Author Austin Posts:2,545 Points:547,150 Joined:Jul 2008	Message Posted: Mar 12, 2010 10:07:50 AM Ignore WillCody Report Abuse I guess that's what politicians do with our money! We should have let GM, GMAC, AIG, etc., etc. file for bankruptcy BEFORE government (read taxpayer) bailout!
BobbyVA Champion Author Virginia Beach Posts:1,472 Points:315,810 Joined:Jul 2009	Message Posted: Mar 12, 2010 10:04:48 AM Ignore BobbyVA Report Abuse Just like Obama Motors they repay nothing........ What kind of free enterprise are we talking about, a financial arm of GM not repaying a $6.3 million govt loan. Look what happen to the banks that repaid with interest the loans from TARP, the so called govt took them to the cleaners even though they had repaid w/int (Something is not right in DC). What kind of crooks are running this country (Chicago Mafia), it is pathetic. God save us. [Edited by: BobbyVA at 3/12/2010 12:06:19 PM EST]
afghaned Champion Author Hamilton Posts:4,388 Points:313,600 Joined:May 2004	Message Posted: Mar 12, 2010 10:04:28 AM Ignore afghaned Report Abuse Our government hounded an old lady for $1,000 she owed in taxes but then hasn't bothered Bombardier for the millions & millions they owe. It happens everywhere. Chase down the weak & poor but do nothing for those that can use corporate lawyers to keep things tied up in court or awaiting court. Canada is in the same boat when it comes to GM!!!!
StickySam Champion Author Virginia Posts:2,796 Points:589,160 Joined:Nov 2007	Message Posted: Mar 12, 2010 10:04:20 AM Ignore StickySam Report Abuse Seeing as GMAC has bled the tax payer for $17.2 billion, they should pay it back. OhBummer already owns GM ( Government Motors ) so take control of GMAC until every last cent of tax payers money has been repaid.
Lengas Champion Author Gary Posts:8,398 Points:1,743,075 Joined:Nov 2004	Message Posted: Mar 12, 2010 10:04:14 AM Ignore Lengas Report Abuse Make them payback OUR money or put them in Bankruptcy. If our congress can't do their job FIRE THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
MightyDude Champion Author Minnesota Posts:5,356 Points:1,676,295 Joined:Mar 2003	Message Posted: Mar 12, 2010 10:03:46 AM Ignore MightyDude Report Abuse don't worry it's only taxpayer dollars
jdhelm Champion Author Iowa Posts:1,419 Points:225,240 Joined:Dec 2009	Message Posted: Mar 12, 2010 10:01:32 AM Ignore jdhelm Report Abuse I guess i won't be buying those 500 new 2011 special corvettes anyhow now.
slvrdo_dsprdo Champion Author Nashville Posts:1,852 Points:372,680 Joined:Jul 2008	Message Posted: Mar 12, 2010 9:58:06 AM Ignore slvrdo_dsprdo Report Abuse WHAT?!? ARE YOU FREAKING KIDDING ME?!? If I or you took $17.2 billion, and never intended to pay back $6.3 billion of it, there would be a worldwide manhunt. They'd throw us UNDER the federal freaking PMITA prison! Their solution to this is "demand a business plan from GMAC"?!? THAT'S IT. THROW THEM ALL OUT IN NOVEMBER.
SeerLV Champion Author Las Vegas Posts:3,498 Points:717,685 Joined:Jun 2008	Message Posted: Mar 12, 2010 9:57:38 AM Ignore SeerLV Report Abuse Suprise, suprise, suprise . . .
gasokie All-Star Author Oklahoma Posts:550 Points:578,695 Joined:May 2007	Message Posted: Mar 12, 2010 9:57:34 AM Ignore gasokie Report Abuse Why should they pay it back? They can brush off the debt...the govt isn't going to do anything (at least they think so) and then they can give the top execs a tidy bonus for being such good stewarts.
Somis1 Champion Author Ventura Posts:8,343 Points:1,664,415 Joined:Jul 2005	Message Posted: Mar 12, 2010 9:57:18 AM Ignore Somis1 Report Abuse Is all that money a "loan" to all recipients? Paying it back ought to be a priority, if it is.
NavyEOD Champion Author Los Angeles Posts:5,159 Points:1,062,540 Joined:Jul 2007	Message Posted: Mar 12, 2010 9:57:03 AM Ignore NavyEOD Report Abuse This is part of the reason I will never buy a GM anything again.
GryphonX Champion Author Nevada Posts:2,877 Points:731,455 Joined:Nov 2007	Message Posted: Mar 12, 2010 9:56:26 AM Ignore GryphonX Report Abuse Saw this one coming ...
HailstormCA Champion Author San Diego Posts:3,487 Points:610,150 Joined:Nov 2008	Message Posted: Mar 12, 2010 9:54:13 AM Ignore HailstormCA Report Abuse If GMAC won't be honorable, boycott any and all of their associated products or business partners (like GM) and let them go completely out of business.
Valricoslash Champion Author Tampa Posts:1,788 Points:396,295 Joined:Nov 2008	Message Posted: Mar 12, 2010 9:53:33 AM Ignore Valricoslash Report Abuse Do ya think. GM/GMAC, etc. are no better tahn a thord world country. if it wer not for the bailout there would be no Chevys running at Daytona this year. Don't expect the to pay back everything--it is taxpayer money, after all. And if they get into deepr trouble, you can be sure that Obama and company wil bail them out again at our expense.
rsm315 All-Star Author Detroit Posts:845 Points:220,505 Joined:Dec 2009	Message Posted: Mar 12, 2010 9:53:32 AM Ignore rsm315 Report Abuse go figure
KNOTTUSLIM Sophomore Author Kansas Posts:171 Points:227,145 Joined:Oct 2008	Message Posted: Mar 12, 2010 9:53:12 AM Ignore KNOTTUSLIM Report Abuse And people will continue to support GM,go figure.
Doubleeez Champion Author Connecticut Posts:2,752 Points:547,465 Joined:Sep 2005	Message Posted: Mar 12, 2010 9:53:05 AM Ignore Doubleeez Report Abuse If GMAC won't repay, then force them to remerge with GM, who will pay!! We are entitled to get our money back.
pdcarver Champion Author San Diego Posts:1,284 Points:245,595 Joined:Sep 2009	Message Posted: Mar 12, 2010 9:49:55 AM Ignore pdcarver Report Abuse union pay off
myambro Champion Author Sacramento Posts:1,139 Points:437,740 Joined:Mar 2005	Message Posted: Mar 12, 2010 9:49:03 AM Ignore myambro Report Abuse Sink or swim.
Patch44 Champion Author Buffalo Posts:3,778 Points:903,085 Joined:Oct 2007	Message Posted: Mar 12, 2010 9:47:53 AM Ignore Patch44 Report Abuse I certainly hope they pay it back as they say they will. Wait and see.
billy44bo Champion Author Mobile Posts:3,292 Points:622,105 Joined:Feb 2008	Message Posted: Mar 12, 2010 9:45:46 AM Ignore billy44bo Report Abuse bbthegun got it right on this one
bluenvoy Champion Author Nashville Posts:7,835 Points:1,092,990 Joined:Oct 2005	Message Posted: Mar 12, 2010 9:44:47 AM Ignore bluenvoy Report Abuse GMAC is part of a much bigger financial company now. Maybe the parent company can pay.
bbthegun Champion Author San Diego Posts:3,077 Points:859,275 Joined:Sep 2006	Message Posted: Mar 12, 2010 9:43:44 AM Ignore bbthegun Report Abuse So Obama Motors bank won't pay Obama's government? Don't think I'll pass out from the shock of this news...
PithyOpiner Champion Author Stockton Posts:6,928 Points:712,905 Joined:Jun 2008	Message Posted: Mar 12, 2010 9:42:35 AM Ignore PithyOpiner Report Abuse Go get 'em, Liz. Sic 'em!
MG_Sputnik Champion Author Philadelphia Posts:3,238 Points:1,031,755 Joined:Apr 2006	Message Posted: Mar 12, 2010 9:38:50 AM Ignore MG_Sputnik Report Abuse Again, we are the ones who get screwed. High gas prices et al.
pnd1 Champion Author Tallahassee Posts:1,880 Points:374,755 Joined:Jul 2009	Message Posted: Mar 12, 2010 9:38:00 AM Ignore pnd1 Report Abuse Is anyone surprised?
baitmn Champion Author New Orleans Posts:4,018 Points:1,130,975 Joined:Sep 2006	Message Posted: Mar 12, 2010 9:37:30 AM Ignore baitmn Report Abuse this was a bad deal for all of us in the country, gmac should have bitten the dust like any other person or business who would have been in problems, but no our crooks in our GUBMINT took our tax money to give them crooks for payback for the election $$$$$$.
Agabel Champion Author Colorado Springs Posts:1,536 Points:946,815 Joined:Aug 2005	Message Posted: Mar 12, 2010 9:19:14 AM Ignore Agabel Report Abuse Maybe GM will give the government some GM stock instead
Skipper52 Champion Author Massachusetts Posts:2,561 Points:634,900 Joined:Oct 2008	Message Posted: Mar 12, 2010 9:18:41 AM Ignore Skipper52 Report Abuse The US tax payer takes the hit again. No surprise.
Zakmeister All-Star Author Cleveland Posts:633 Points:209,145 Joined:Jul 2007	Message Posted: Mar 12, 2010 9:07:03 AM Ignore Zakmeister Report Abuse What's $6 Billion whan BHO has ran the debt up to $12 Trillion?
skybiker Champion Author South Carolina Posts:3,340 Points:663,205 Joined:Jul 2008	Message Posted: Mar 12, 2010 9:02:56 AM Ignore skybiker Report Abuse So not only were the stockholders(read retired investors) screwed but now they will screw the taxpayers too.....
Kimmunicate All-Star Author San Francisco Posts:696 Points:159,280 Joined:Jan 2010	Message Posted: Mar 12, 2010 9:02:29 AM Ignore Kimmunicate Report Abuse Since when did it become ok to not pay back your debt?!?!?! OH yeah, since America started rewarding people for debt.
TallSteve Champion Author Dayton Posts:2,790 Points:566,205 Joined:Nov 2006	Message Posted: Mar 12, 2010 9:02:22 AM Ignore TallSteve Report Abuse " in Chrysler's case, forced bondholders to take about 29 cents on the dollar for the company's debt" but they took care of the unions. The company owners...also known as the shareholders...got the shaft, while the union got a big piece of the ownership pie.
AtascaderoHound All-Star Author California Posts:557 Points:588,690 Joined:Oct 2006	Message Posted: Mar 12, 2010 9:01:48 AM Ignore AtascaderoHound Report Abuse All business suffering from the years of inept Bush administration and Republican congress. Let's put the responsibility where it belongs!
2go2 Sophomore Author Michigan Posts:136 Points:747,070 Joined:Jul 2006	Message Posted: Mar 12, 2010 9:00:54 AM Ignore 2go2 Report Abuse dumnbama :(
eaglev Champion Author Oklahoma City Posts:2,371 Points:609,615 Joined:Jul 2005	Message Posted: Mar 12, 2010 8:59:42 AM Ignore eaglev Report Abuse As if we didn't know that already!!!
LilRedWagonIN Champion Author Indiana Posts:2,835 Points:607,055 Joined:Oct 2008	Message Posted: Mar 12, 2010 8:55:52 AM Ignore LilRedWagonIN Report Abuse Bring back Debtors Prison!
donny47 All-Star Author New Hampshire Posts:847 Points:351,120 Joined:Feb 2009	Message Posted: Mar 12, 2010 8:55:49 AM Ignore donny47 Report Abuse obama already spent the money he wont get back.
Zinnoil Champion Author Florida Posts:18,901 Points:2,139,725 Joined:May 2004	Message Posted: Mar 12, 2010 8:55:45 AM Ignore Zinnoil Report Abuse Put GMAC in bankruptcy and get the incompetent 0bama Administration out of ruining American businesses.
doncNJ Champion Author New Jersey Posts:2,780 Points:565,920 Joined:Oct 2008	Message Posted: Mar 12, 2010 8:52:29 AM Ignore doncNJ Report Abuse I thought that BarackO said that we would get paid back. Another untruth.
nurdco Champion Author Colorado Springs Posts:3,832 Points:719,030 Joined:Apr 2008	Message Posted: Mar 12, 2010 8:50:41 AM Ignore nurdco Report Abuse Convert debt to a stock position... like Citibank
gvan Champion Author Chicago Posts:14,486 Points:1,869,540 Joined:Dec 2004	Message Posted: Mar 12, 2010 8:47:32 AM Ignore gvan Report Abuse "Sounds just like what GM would do." "I want my money back! If not, I'll take a loaded Traverse with free maintenance for life in return!" "Enough is enough! GM/GMAC should be forced into bankruptcy with all their assets put on public auction with cash results given (back) to taxpayers." How is it that people don't understand that GM is a minority stockholder in GMAC?
repeater1 Champion Author Kansas Posts:3,462 Points:1,405,320 Joined:Oct 2005	Message Posted: Mar 12, 2010 8:47:06 AM Ignore repeater1 Report Abuse Isn't that amazing that they wont have to repay part of the loan after being reassured by BO that it would all be repaid. Never trust a politician but there is nothing new there.
derKraut All-Star Author Ontario Posts:785 Points:409,670 Joined:Dec 2008	Message Posted: Mar 12, 2010 8:43:36 AM Ignore derKraut Report Abuse WHAT "Treasury wiped out the companies' common stock and, in Chrysler's case, forced bondholders to take about 29 cents on the dollar for the company's debt" but did no such thing to GM???? Me smells a RAT.