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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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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.
sam7777 Veteran Author Grand Rapids Posts:286 Points:42,280 Joined:Jun 2009	Message Posted: Mar 12, 2010 8:26:46 AM Ignore sam7777 Report Abuse I will never buy a GM car until they are on their own and not owned by the government. GMAC should have been forced into bakruptcy. They were not "Too big to fail". With all of this debt that the US is accumulating from printing more money, the US is probably on China's "Too big to fail" list.
mooneagle Champion Author Oklahoma City Posts:3,821 Points:785,165 Joined:Jun 2008	Message Posted: Mar 12, 2010 8:16:55 AM Ignore mooneagle Report Abuse That GMAC for you they take the taxpayer money and not pay it back who in the he$$ would buy a car for them. Thank God for my Ford.
Manual_Shifter Veteran Author New Brunswick Posts:329 Points:527,640 Joined:Jan 2004	Message Posted: Mar 12, 2010 8:16:33 AM Ignore Manual_Shifter Report Abuse 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. They and their affiliates (unions, dealers, etc.) made their beds and must be made to lay in them.
jeepman64 All-Star Author Indiana Posts:909 Points:847,660 Joined:Aug 2004	Message Posted: Mar 12, 2010 8:12:41 AM Ignore jeepman64 Report Abuse This makes me sick to my stomach.
Maintroll Champion Author Lexington Posts:3,699 Points:727,160 Joined:Aug 2008	Message Posted: Mar 12, 2010 8:11:55 AM Ignore Maintroll Report Abuse Thanks Hot Air Obama for pouring our monies down an abyss.
KillChain Champion Author Albuquerque Posts:2,264 Points:603,800 Joined:Jun 2006	Message Posted: Mar 12, 2010 8:11:39 AM Ignore KillChain Report Abuse Wow!, who was dumb enough not to see that coming. Thank BHO fans!!!
FlyNFool Champion Author South Carolina Posts:3,581 Points:724,270 Joined:Aug 2008	Message Posted: Mar 12, 2010 8:09:54 AM Ignore FlyNFool Report Abuse I want my money back! If not, I'll take a loaded Traverse with free maintenance for life in return!
Chazzy12 Champion Author Massachusetts Posts:2,093 Points:428,955 Joined:Dec 2008	Message Posted: Mar 12, 2010 8:09:07 AM Ignore Chazzy12 Report Abuse So much for the need to do "something".
CPayZombie Champion Author Phoenix Posts:4,340 Points:680,300 Joined:Aug 2008	Message Posted: Mar 12, 2010 8:08:19 AM Ignore CPayZombie Report Abuse How about giving every tax payer a car?
rowing All-Star Author Macon Posts:880 Points:261,610 Joined:Sep 2009	Message Posted: Mar 12, 2010 8:05:47 AM Ignore rowing Report Abuse I thought that if you can't pay back a loan you are foreclosed on. This is what needs to happen if they don't pay back the loan!
grandmacbc Champion Author Buffalo Posts:1,744 Points:535,155 Joined:Oct 2008	Message Posted: Mar 12, 2010 8:04:11 AM Ignore grandmacbc Report Abuse GMAC has been launching a mail campaign trying to sell me insurance etc. for the past month. They didn't make me feel warm and fuzzy about doing business with them.
VetteBlue Champion Author San Jose Posts:5,496 Points:1,123,535 Joined:Jan 2007	Message Posted: Mar 12, 2010 8:03:12 AM Ignore VetteBlue Report Abuse Sounds just like what GM would do.
remay Champion Author Houston Posts:2,242 Points:1,157,915 Joined:May 2006	Message Posted: Mar 12, 2010 7:56:21 AM Ignore remay Report Abuse "The main source of GMAC's $10.3-billion loss in 2009 was the ResCap mortgage lending subsidiary. ResCap was an aggressive underwriter of subprime mortgages during the housing bubble that burst in late 2007." I say let 'em sink.