RSS feedGMAC
’From foreclosure to writedowns
Foreclosure worries are now (finally) seeping into bank shares and credit.
Four US financials — Bank of America, JP Morgan Chase, GMac/Ally, PNC — have halted foreclosures in all or some US states while they sort out technical deficiencies in their paperwork process.
MERS, an acronym of mass foreclosure destruction
Financial ‘innovation’ coming back to haunt the system is something we are familiar with.
But do welcome a new toxic acronym to the stable — MERS — that’s Mortgage Electronic Registration Systems Inc.
S&P on GMAC: another executive bites the dust? Not surprised.
Standard & Poor’s statement regarding the departure of GMAC’s chief financial officer was a refreshingly forthright portrait of the challenges facing the much-bailed-out company.
We quote, emphasis ours:
GMAC chief ousted amid bailout talks
Alvaro de Molina was ousted on Monday as chief executive of GMAC Financial Services, the lending arm of General Motors, after little more than 18 months in the job as the troubled lender continued talks with the US Treasury over a third government bail-out.
GMAC’s CEO Alvaro de Molina resigns
Alvaro de Molina, GMAC’s highly-paid chief executive, has resigned on the advice of the lender’s board of directors.
Michael Carpenter, chairman of Southgate Alternative Investments and a former chief executive at Salomon Smith Barney,
Fed (still) positive on stress-tested banks
The Federal Reserve released a statement regarding the “Supervisory Capital Assessment Program” on Monday. For those with short memories, SCAP is Fed-speak for “stress tests on 19 major US banks”.
The results of the SCAP,
GMAC set for $5.6bn injection
GMAC, the car financing company which is poised to merge with Chrysler Financial, is set to receive up to $5.6bn in a capital injection from the US Treasury, paving the way for the government to become the majority shareholder.
GMAC said to seek a fresh bailout
GMAC, the troubled American consumer finance group, is reportedly seeking its third hand-out of Federal aid in a move that could leave the US government with a controlling stake, the New York Times reported.
Capmark files for bankruptcy
Commercial real estate company Capmark Financial filed for bankruptcy protection on Sunday, wiping out the investment of several private equity firms including KKR, reports Reuters. Capmark, which was created in March of 2006 through a leveraged buyout of the commercial real estate assets of General Motors’ finance arm GMAC,
GMAC, banks, clash over Ally Bank
GMAC and a bank lobby group have clashed over the high interest rates GMAC’s bank unit is paying for deposits, with bankers saying GMAC is unfairly subsidised by federal funds, reports the WSJ. In the latest salvo,
US puts $7.5bn into GMAC
GMAC, the automotive financing company, received $7.5bn of government aid on Thursday, allowing it to stay in business and offer loans to buyers of Chrysler vehicles. The investment comes before the June 1 deadline for General Motors to complete a restructuring or file for bankruptcy,
Fresh bail-out hopes lift GMAC
GMAC bonds rallied on Wednesday ahead of an expected announcement from the US government that it will invest another $7bn in the company, through which it could take a majority stake, in an effort to shore up the automotive industry.
Debt wait for GMAC and CIT
GMAC and CIT, two of the largest US finance companies, remain unable to issue government-backed debt almost three months after they became bank holding companies to gain access to the rescue schemes. Both
Bailout creep: Chrysler Financial has a clever new plan
Is there no end to bailout creep and the many ingenious ways that US car makers and others are hatching fresh ideas to access federal bailout funds, government subsidies, loans and any other kind of public aid?
In the latest brazen attempt to double-dip into public coffers,
Chrysler arm seeks US relief funding
Chrysler’s financing unit is in talks with the US government to change its status so it can tap into the federal Tarp scheme and other sources of credit. The Detroit carmaker, which received $4bn in government aid on Friday,
Merkin to step down as GMAC chair
Ezra Merkin, a US money manager whose funds have been among the casualties of Bernard Madoff’s alleged $50bn “Ponzi” scheme, is set to step down as chairman of GMAC, the financing arm of General Motors.
GMAC holders agree terms
Investors in GMAC LLC holding about $10.5bn of bonds agreed to accept sweetened terms of a debt swap, making it more likely the finance company will gain the necessary support to convert to a bank and gain access to government assistance,
GMAC warns on capital-raising
GMAC said Wednesday it could drop its attempt to become a bank holding company after failing to raise the capital needed, casting doubt on its ability to survive the financial crisis. The ailing consumer lender part-owned by GM is seeking a bank charter so it can access the US government’s $700bn rescue fund for the financial industry,
GMAC’s individual investors not so smart after all
Individual investors who hold notes issued by GM’s financing unit GMAC will have to queue up behind institutional investors in the event of a bankruptcy filing, according to a Bloomberg report.
These individuals hold around $14.6bn of so-called SmartNotes,
UK’s Woolworths falls into administration
Woolworths fell into administration on Wednesday, putting 30,000 jobs at risk on a bleak day for UK retailers. The troubled variety store chain failed to get sufficient backing from its banks to overcome a cash crisis and directors met to appoint Deloitte as administrator just after MFI,
Make me a bank!
The TARP: such stuff as dreams bank holding companies are made on.
GMAC Files Application With Federal Reserve to Become Bank Holding Company
Commences private exchange offers and cash tender offers for $38 billion of certain outstanding GMAC and ResCap debt securities to increase capital
NEW YORK,
GM woes worsen after Delphi warning
General Motors on Monday warned that Delphi, its biggest parts supplier, may be unable to emerge from bankruptcy protection. In a regulatory filing, the ailing US carmaker also gave a bleak view of prospects for ResCap,
GMAC warns ResCap could fail
GMAC, General Motors’ financing arm, on Wednesday said there was “substantial doubt” as to whether Residential Capital, its mortgage finance unit, would survive without support. The company reported a wider third-quarter loss,
Kerkorian sells down his Ford stake
US billionaire Kirk Kerkorian is selling down his stake in Ford Motor because he sees more value in his gambling holdings. The move represents a fresh blow for Ford, the most highly leveraged of Detroit’s three loss-making carmakers.
GMAC to axe 5,000 jobs at ResCap
GMAC said Wednesday it would cut thousands of jobs at its embattled mortgage lending arm, Residential Capital, and shut all 200 of its GMAC Mortgage retail offices in response to continued weakness in the US housing and credit markets.
UK’s Cowdery draws up ‘hit list’
Clive Cowdery, the UK financial entrepreneur, has drawn up a “hit list” ranging from building societies to mortgage specialists that he plans to target, having been rebuffed last week by UK lender Bradford & Bingley,
GMAC and ResCap secure lifeline
GMAC and Residential Capital, GMAC’s embattled mortgage lending arm, on Wednesday secured an urgently needed $60bn rescue financing package to help stave off the threat of a ResCap bankruptcy filing.
GMAC, Cerberus aid struggling ResCap
Residential Capital, the US mortgage lender owned by GMAC, is grappling to raise $2bn in the next four weeks to meet urgent liquidity needs and satisfy the terms of its debt agreements. ResCap said in a securities filing that its inability to complete asset sales and losses on some hedges had boosted its near-term cash needs by $1.4bn more than expected.
Investors share GMAC and Chrysler woes
The fallout from the troubles at Chrysler and GMAC could extend beyond Cerberus Capital Management as it has emerged that the buy-out firm has sold “significantly” more than half its equity to about 90 investors.
Avoiding the Crunch, Woolworths arranges asset-backed loan
Woolworths, the UK-based retailer, has carried out what it claims is the biggest asset-backed loan deal in European retail, staving off a potential credit crunch at the confectionery and entertainment group and leaving the door open for an eventual demerger.