Watchdog: GMAC bailout could cost taxpayers $6.3B

[cory777]

Source: AP

By DANIEL WAGNER, AP Business Writer Daniel Wagner, Ap Business Writer

WASHINGTON – The Treasury Department sank billions into auto finance giant GMAC Inc. without an exit strategy or proof the company was viable — a decision that could cost taxpayers $6.3 billion, a new watchdog report says.

The government said the $17.2 billion bailout was a necessary step to save troubled automakers General Motors and Chrysler. GMAC provides critical financing to auto dealers, who borrow to finance their fleets until the cars can be sold to consumers.

Yet GMAC faced far fewer conditions than the bailed-out automakers, the report says. When the automakers were rescued, they were forced into bankruptcy. Shareholders lost their investments, creditors took a hit and executives were forced to detail plans for making the companies viable.

GMAC was treated more like banks that received bailouts without having to explain what they were doing with the money, the report says.

Read more: http://news.yahoo.com/s/ap/20100311/ap_on_bi_ge/us_gmac_oversight

[Lerkfish]

1. but god forbid we should extend unemployment benefits....

[Supersedeas]

7. Yep

[madrchsod]

2. gmac is financing a lot of car and truck sales for gm....

and gm sales are strong and the loan will be paid back.

[qualityhashish]

3. Car and truck sales?

They are being bailed out because they were one of the most notorious loan sharks out there, making money by raping entire communities with subprime loans, knowing full well that they would be bailed out. (and they were) You're clueless about what this article is referring to - thanks.

[PassingFair]

4. GMAC has my mortgage.

They are much more than auto financing.

[WriteDown]

5. That's a pittance compared to Fannie Mae. nt

[mbperrin]

6. I don't care. I have $182 billion invested in AIG and Goldman sucked

up $30 or so billion of that just so they could thumb their noses at me.

$6 billion is shit.