November 17, 2009 |
Auto and home lender GMAC Financial Services said Chief Executive Alvaro de Molina was stepping down. Michael A. Carpenter, a member of GMAC's board of directors, has been named his successor. De Molina's sudden resignation comes while the lender is in the midst of negotiating with the Treasury Department over additional taxpayer assistance. GMAC is instrumental to the operations of automakers General Motors Co. and Chrysler Group, but its finances have been haunted by bad loans it made in the housing boom.
December 28, 2008 |
As a crucial deadline passed, the financing arm of General Motors Corp. did not comment on whether it had cleared a final obstacle to become a bank holding company and gain access to billions in federal bailout money. Analysts have speculated that if GMAC Financial Services of Grand Blanc doesn't obtain financial help, it will have to file for bankruptcy protection or shut down -- a serious blow to parent GM's chances for survival. GMAC had received the Federal Reserve's approval to become a bank holding company last week, but the approval was contingent on the ailing auto and home loan provider completing a debt-for-equity exchange by Saturday.
May 23, 2009 |
General Motors Corp. said Friday that it had borrowed an additional $4 billion from the Treasury Department, meaning the automaker has now accepted $19.4 billion in loans from the U.S. government. GM started taking government money in December and said it intended to borrow $2.6 billion more by June 1 and an additional $9 billion after that. But in a regulatory filing Friday, GM said it needed $1.4 billion sooner than originally forecast.
October 29, 2009 |
NEW YORK -- GMAC, the former lending arm of General Motors Co., is in talks with the Treasury Department for a third injection of taxpayer aid, a further sign of the U.S. government's entrenchment in the auto industry. The Treasury Department mandated earlier this year that GMAC Financial Services raise an additional $11.5 billion in capital by next month after undergoing a "stress test" along with 18 other banks. While other banks deemed undercapitalized have been able to raise funds from private investors, GMAC has been forced to go back to the government.
February 5, 2010
Home and auto lender GMAC Financial Services said Thursday that it lost $5 billion in the last three months of 2009, as losses from mortgage operations kept the company in the red for another quarter. GMAC, which is owned by the federal government, is still working to sell its troubled home lending business, ResCap. Mortgage operations overall lost more than $4 billion during the quarter, and GMAC took a $3.3-billion charge related to its efforts to sell the unit. GMAC's automotive lending unit has been profitable recently and made $369 million in the quarter.
December 31, 2009 |
GMAC Financial Services will get a $3.8-billion boost in federal aid as the auto industry's key lender to consumers and related businesses struggles to regain its financial footing. The lifeline, the company's third helping of taxpayer funds in the last year, is aimed at keeping the Detroit lender on track to its goal of improved finances next year and an eventual profit. The infusion will raise the government's ownership stake to 56% from 35%. "These actions offer the best chance for GMAC to complete its overall restructuring plan and return to the private capital markets for its debt financing and capital needs in 2010," the Treasury Department said in a statement.