US Government Gains Controlling Stake in GMAC with Additional $3.8 Billion Infusion

Wednesday, December 30, 2009 , , 3 Comments

Congratulations on your New Year gift to yourselves, United States Government!

The rumors are true, kids, now bend over, Timmy needs to cover this one...

CNN Money:

GMAC Financial Services will receive a third round of bailout funds from the U.S. Treasury Department and the government will have a controlling stake in the company, according to a government report Wednesday.

The troubled auto and mortgage lender will collect $3.8 billion of additional aid on top of the nearly $13.5 billion already received since December 2008, the Treasury said in a statement Wednesday.

The fresh lifeline is intended to return Detroit-based GMAC to profitability in the first quarter of 2010, according to the report, and will likely allow GMAC to avoid placing its home lending unit, Residential Capital, into bankruptcy.

This additional money will give the company the "capital buffer" it needs "to meet the worse-than-expected economic scenario," GMAC said in a statement Wednesday.

The Treasury's stake in GMAC will increase from 35% to 56%, and the government will have the right to appoint two additional directors to the company's Board of Directors.

Third time's a charm, eh Timmy? Why GMAC? Do the Chinese own them too?

Also, what's this "worse-than-expected economic scenario" of which GMAC speaks? I thought everything was looking awesome and perfect and rosy?! WTF, where are the unicorn farts the mainstream media keeps shoving up our asses? Apparently GMAC doesn't read the MSM.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Why not!?!? Ally Bank, the officially not-GMAC bank owned by GMAC, is now officially the US Government's bank. So how does their transactions with the FED work? Holy crap I think we just went three layers deep in monitization masturbation.

SO, hear me out: Ally bank gets in trouble, loans 500K to illegal immigrant fence builders who earn 20K a year; what happens? It's parent company is owned by the US Government right? Ally bank has these shitbox mortgages that it needs to use as collateral and sells it to the FED, obviously illegally but then illegal is this century's legal, and gets money back. But Ally bank is the government and the government issues debt that the Fed also buys in it's self S&M debauchery. So is Ally bank just another avenue for the Fed and Treasury to monetize without saying they are monetizing because Ally bank publicly states they are not GMAC even though GMAC's 10Q states they are GMAC....

BUT WAIT, THERE'S MORE, what happens when the Fed wants to unload it's sick array of worthless mortgage backed securities that it says it can easily unload. ALLY BANK steps up to the plate and pays 100 cents on the dollar and the Fed claims that a private institution did purchase it's toxic material. THEN ALLY Bank sells those securities to Citi, also nationalized, who then uses them as collateral for another Fed bailout. The Fed buys those securities back for 100 ce....OH MY GOD!

You know what? This is like masturbating to the naked scene in Schindler's List. Absolutely, undeniably, completely, sickeningly WRONG!


I get the sense that you are angry. Do you want to talk about it?

No fucking shit. I've always said this is little more than a massive money laundering scheme - in this case, the "dirty" money ($$ printed by Zimbabwe Ben and the actual $$ wealth transfer that has been at work since the days of our buddy AG and then some) needs to get "clean" and apparently this is how they're planning on doing it.

Reminds me of the scene in Goodfellas when they're bringing in cases of booze and fur coats through the back door of the lounge and slipping them right back out the front.

What a brilliant scam! Why did no one think of this nationalization shit before?