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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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Author Topic: Panel: GMAC won't repay $6.3 billion of bailout Post a Reply Back to Topics
REPLIES (newest first)
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cpl11787
All-Star Author Minnesota

Posts:630
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Message Posted: Mar 13, 2010 7:40:22 PM

if they needed to borrow 17.2 billion dollars something is definitely wrong.
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kelsielee
Champion Author Atlanta

Posts:3,266
Points:629,815
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Message Posted: Mar 13, 2010 7:04:31 PM

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).
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TheDix
All-Star Author Ontario

Posts:599
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Message Posted: Mar 12, 2010 3:43:51 PM


Give the C.E.O.a Toyota for Christmas instead of cash.
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orestroker
All-Star Author Portland

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Message Posted: Mar 12, 2010 1:17:06 PM

If I could just get a few people to forgive about $250,000, I could...
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Amplion
Champion Author Oregon

Posts:1,325
Points:853,205
Joined:Sep 2005
Message Posted: Mar 12, 2010 12:00:47 PM

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.
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WillCody
Champion Author Austin

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Points:505,765
Joined:Jul 2008
Message Posted: Mar 12, 2010 10:07:50 AM

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!
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BobbyVA
Champion Author Virginia Beach

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Message Posted: Mar 12, 2010 10:04:48 AM

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]
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afghaned
Champion Author Hamilton

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Message Posted: Mar 12, 2010 10:04:28 AM

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!!!!
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StickySam
Champion Author Virginia

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Message Posted: Mar 12, 2010 10:04:20 AM

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.
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Lengas
Champion Author Gary

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Message Posted: Mar 12, 2010 10:04:14 AM

Make them payback OUR money or put them in Bankruptcy. If our congress can't do their job FIRE THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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MightyDude
Champion Author Minnesota

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Message Posted: Mar 12, 2010 10:03:46 AM

don't worry it's only taxpayer dollars
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jdhelm
Champion Author Iowa

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Message Posted: Mar 12, 2010 10:01:32 AM

I guess i won't be buying those 500 new 2011 special corvettes anyhow now.
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slvrdo_dsprdo
Champion Author Nashville

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Message Posted: Mar 12, 2010 9:58:06 AM

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.
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SeerLV
Champion Author Las Vegas

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Message Posted: Mar 12, 2010 9:57:38 AM

Suprise, suprise, suprise . . .
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gasokie
Veteran Author Oklahoma

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Message Posted: Mar 12, 2010 9:57:34 AM

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.
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Somis1
Champion Author Ventura

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Message Posted: Mar 12, 2010 9:57:18 AM

Is all that money a "loan" to all recipients? Paying it back ought to be a priority, if it is.
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NavyEOD
Champion Author Los Angeles

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Message Posted: Mar 12, 2010 9:57:03 AM

This is part of the reason I will never buy a GM anything again.
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GryphonX
Champion Author Nevada

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Message Posted: Mar 12, 2010 9:56:26 AM

Saw this one coming ...
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HailstormCA
Champion Author San Diego

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Message Posted: Mar 12, 2010 9:54:13 AM

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.
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Valricoslash
Champion Author Tampa

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Message Posted: Mar 12, 2010 9:53:33 AM

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.
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rsm315
All-Star Author Detroit

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Message Posted: Mar 12, 2010 9:53:32 AM

go figure
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KNOTTUSLIM
Sophomore Author Kansas

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Message Posted: Mar 12, 2010 9:53:12 AM

And people will continue to support GM,go figure.
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Doubleeez
Champion Author Connecticut

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Message Posted: Mar 12, 2010 9:53:05 AM

If GMAC won't repay, then force them to remerge with GM, who will pay!! We are entitled to get our money back.
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pdcarver
Champion Author San Diego

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Message Posted: Mar 12, 2010 9:49:55 AM

union pay off
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myambro
Champion Author Sacramento

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Message Posted: Mar 12, 2010 9:49:03 AM

Sink or swim.
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Patch44
Champion Author Buffalo

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Message Posted: Mar 12, 2010 9:47:53 AM

I certainly hope they pay it back as they say they will. Wait and see.
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billy44bo
Champion Author Mobile

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Message Posted: Mar 12, 2010 9:45:46 AM

bbthegun got it right on this one
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bluenvoy
Champion Author Nashville

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Message Posted: Mar 12, 2010 9:44:47 AM

GMAC is part of a much bigger financial company now. Maybe the parent company can pay.
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bbthegun
Champion Author San Diego

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Message Posted: Mar 12, 2010 9:43:44 AM

So Obama Motors bank won't pay Obama's government? Don't think I'll pass out from the shock of this news...
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PithyOpiner
Champion Author Stockton

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Message Posted: Mar 12, 2010 9:42:35 AM

Go get 'em, Liz. Sic 'em!
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MG_Sputnik
Champion Author Philadelphia

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Message Posted: Mar 12, 2010 9:38:50 AM

Again, we are the ones who get screwed. High gas prices et al.
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pnd1
Champion Author Tallahassee

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Message Posted: Mar 12, 2010 9:38:00 AM

Is anyone surprised?
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baitmn
Champion Author New Orleans

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Message Posted: Mar 12, 2010 9:37:30 AM

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 $$$$$$.
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Agabel
Champion Author Colorado Springs

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Message Posted: Mar 12, 2010 9:19:14 AM

Maybe GM will give the government some GM stock instead
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Skipper52
Champion Author Massachusetts

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Message Posted: Mar 12, 2010 9:18:41 AM

The US tax payer takes the hit again. No surprise.
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Zakmeister
All-Star Author Cleveland

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Message Posted: Mar 12, 2010 9:07:03 AM

What's $6 Billion whan BHO has ran the debt up to $12 Trillion?
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skybiker
Champion Author South Carolina

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Message Posted: Mar 12, 2010 9:02:56 AM

So not only were the stockholders(read retired investors) screwed but now they will screw the taxpayers too.....
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Kimmunicate
All-Star Author San Francisco

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Message Posted: Mar 12, 2010 9:02:29 AM

Since when did it become ok to not pay back your debt?!?!?! OH yeah, since America started rewarding people for debt.
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TallSteve
Champion Author Dayton

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Message Posted: Mar 12, 2010 9:02:22 AM

" 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.
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AtascaderoHound
All-Star Author California

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Message Posted: Mar 12, 2010 9:01:48 AM

All business suffering from the years of inept Bush administration and Republican congress. Let's put the responsibility where it belongs!
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2go2
Sophomore Author Michigan

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Message Posted: Mar 12, 2010 9:00:54 AM

dumnbama :(
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eaglev
Champion Author Oklahoma City

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Message Posted: Mar 12, 2010 8:59:42 AM

As if we didn't know that already!!!
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LilRedWagonIN
Champion Author Indiana

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Message Posted: Mar 12, 2010 8:55:52 AM

Bring back Debtors Prison!
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donny47
All-Star Author New Hampshire

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Message Posted: Mar 12, 2010 8:55:49 AM

obama already spent the money he wont get back.
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Zinnoil
Champion Author Florida

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Message Posted: Mar 12, 2010 8:55:45 AM

Put GMAC in bankruptcy and get the incompetent 0bama Administration out of ruining American businesses.
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doncNJ
Champion Author New Jersey

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Message Posted: Mar 12, 2010 8:52:29 AM

I thought that BarackO said that we would get paid back. Another untruth.
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nurdco
Champion Author Colorado Springs

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Message Posted: Mar 12, 2010 8:50:41 AM

Convert debt to a stock position... like Citibank
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gvan
Champion Author Chicago

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Message Posted: Mar 12, 2010 8:47:32 AM

"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?
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repeater1
Champion Author Kansas

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Message Posted: Mar 12, 2010 8:47:06 AM

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.
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derKraut
All-Star Author Ontario

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Message Posted: Mar 12, 2010 8:43:36 AM

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.
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