November 16, 2009, 4:42 pm GMAC Chief Resigns as Firm Prepares for More Aid GMAC, the troubled former finance arm of General Motors, said on Monday that its chief executive, Alvaro de Molina, had resigned and would be replaced by Michael A. Carpenter, a former top executive at Citigroup. The announcement comes as the firm closes in on another capital infusion from the federal government. GMAC has already taken in $12.5 billion in lifelines from the Treasury Department, which now holds a 35 percent stake in the firm. GMAC said in a statement that it had asked Treasury to postpone making a decision on a third investment in the company until Mr. Carpenter and his new management team get a better sense of how much money the lender still needs. The company needs as much as $5.6 billion in taxpayer money this month to fill in a capital requirements hole, as determined by the government’s stress test of major financial institutions earlier this year. Though only a fraction of the size of a Citigroup or Bank of America, GMAC has taken on a new importance for the government’s bailout programs. The lender was selected by the Obama administration earlier this year as a crucial source of buyer and dealer financing to G.M. and Chrysler. Many of its problems, however, stem from now-soured sub-prime mortgages and other real estate loans it made at the height of the housing bubble.
Now, the reason they need more of our hard (or easy, depending on your zip-code) money, is that they continue to pay off the junk on their books–and the junkyard is just too huge. Goldman and AIG and the other guys in on the scam, are doing the same. Did no one earmark those funds and how they were to be used? Nope. Take the dough and run, right out from under one CEO after another, if that’s what it takes to take the dough. So, you may not be able to finance that new Buick (does GM still have a Buick?), because they’re on their knees to the banks. And we all know what happens on your knees.
The announcement comes as the firm closes in on a third bailout from the federal government. GMAC has already taken in $12.5 billion in lifelines from the Treasury Department.
Interesting. They took it from the Treasury Department. I thought they took it from me and you. Well, that’s a relief. Anyone know if GM still makes a Buick?