commentary on Politics and a little bit of everything else

GMAC will be getting more money….again

GMAC…..the mortgage and lending people…not the car people…. are going to get another $3.5 billion to help it get back on its feet……the money will come from the tarp funds set aside last year…….

Despite the government aid, GMAC remains on shaky financial ground. Last month, it reported a quarterly loss of $767 million. The company has struggled under the weight of its ailing mortgage lender, ResCap. The unit was a major dealer in sub-prime mortgages and is still suffering from soured loans it made during the housing boom. Some analysts have speculated that GMAC might have to shut down ResCap altogether.

However, a bright spot for GMAC has been Ally Bank, its online consumer banking unit. The bank has offered some of the highest interest rates on CDs in the industry, helping bring in billions of dollars in new deposits this year. But the rates have also irked rivals and drawn the attention of regulators, since as the rebranded banking unit of GMAC, Ally has the backing of billions of government dollars loaned to GMAC.

the company will probably need another infusion of about $2 to 5 billion……

What’s another billion here or there?

December 30, 2009 - Posted by | Breaking News, Government, Media, Politics, The Economy | , ,

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