Fed: GMAC to receive more bailout money

The Federal Reserve says GMAC is the only one of 19 stress-tested banks that needs more capital to withstand a future downturn.

[quiggleydownyond er]

this has got me stressed out

[Dump GM Now]

Wow what a surprise, more money to GM???? Why not just let them fail and take the unions with them. Enough taxpayer money to save this monster loser. Loser designs, loser cars, loser unions, loser benefits for a loser company. Let it go under.

[theleftweakensus]

You've got to be kidding me. Lets just pack it in now. We're all doomed.

[Natalia]

I wish I could get government money when I recklessly spend it.

[Incredible70]

Just keep propping up failing banks. Things will get better. And pigs will fly. Trust in our Leader...he knows what is best for us.

[Jill]

This is good news. I know that America can print more money off GMAC and many others that need help. The US mint needs to work overtime shifts.

[It was a simple fix]

Um, NO!!!! Let them fail and declare bankruptcy.

[Nota Sheep]

So...

Why is GM bragging about offering 0% financing at a time when their lending arm (GMAC) doesn't have a pot to piss in? After all, Savior Obama has stepped in and is running the company, and he allows this nonsense to happen?

Typical Obama... no accountability needed.

[RJON]

Are you kidding me!? Us taxpapyers already own most of GM!! This is money down a rathole and another example of govermnet picking winners and losers instead of supply and demand. My business never got a bailout! Just the ones that took the biggest risks and lost the bet like AIG and the big banks. Bad behaviour is encourged and rewarded once again.

[RJON]

Another thought... Anyone heard of ALLY Bank. They are an internet bank currently offering very attractive rate on CD's etc. Higher rates than their competitors any way. The gotcha is that the're the new name for GMAC Bank!
Yep, get bailout money from the govt.(aka taxpayers)and then pay out high interest rates to their banking customers!! Robbing Peter to pay Paul. Lunacy...

[highland guy]

NO! No MORE!
stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it, stop it.

this what i have to say to get my 4 year old to listen. same with politicians, i guess.

[The Leprechaun]

They'd probably be getting it sooner, but the Gov't ran out of green ink and had to order more from the Chinese. As soon as they get the dough GMAC can send it off to India to pay their telemarketers salaries.
Oh and don't forget the year end bonuses for the folks who are engineering the failure of the company.

[Incredible70]

RJON wrote:

Another thought... Anyone heard of ALLY Bank. They are an internet bank currently offering very attractive rate on CD's etc. Higher rates than their competitors any way. The gotcha is that the're the new name for GMAC Bank!
Yep, get bailout money from the govt.(aka taxpayers)and then pay out high interest rates to their banking customers!! Robbing Peter to pay Paul. Lunacy...

While I stand behind not bailing GMAC out, you are missing a critical aspect of how banking works. A bank gives out better return rates on savings and CDs in order to get deposits, which they can then lend out to others (and operate the business). When a bank needs to add capital reserves (as GMAC does), they will give that higher interest rate because they NEED to get deposits. That's why their rates are so high.

Now, the risk is that if they would go down the toilet (which we all know Obama won't allow) you would need to get your deposits covered by the FDIC insurance, which can take some time (and you won't get any of that interest you had coming).

[Porkulus]

Dodd offers bold financial reform plan

http://news.yahoo.com/s/nm/20091110/bs_nm/us_...


WASHINGTON (Reuters)– The U.S. Senate's top banking legislator proposed ambitious financial regulation reforms on Tuesday, leaping beyond earlier proposals to tighten bank regulation, protect consumers and police systemic risk.

In the 1,136-page bill, Senate Banking Committee Chairman Christopher Dodd called for creating three new government agencies, regulating over-the-counter derivatives, and cracking down on hedge funds, credit rating agencies and executive pay.

Flanked by eight other Democratic senators at a news conference, Dodd said he is targeting the first week of December for his committee to work on the measure.

It raises the stakes in a debate under way for months now in Washington over how to bring the government's antiquated regulatory system into the 21st century and prevent a repeat of the capital market crisis that last year brought the world financial system to the brink of disaster.

The late 2008 collapse of former Wall Street giant Lehman Brothers and massive taxpayer bailouts of mega-firms such as AIG and Citigroup angered voters, driving lawmakers toward reforms that have taken shape only slowly.

"The financial crisis exposed a financial regulatory structure ... unable to prevent threats to our economic security," ..

"This proposal will create a new architecture to make our financial institutions more transparent, more responsible, and more accountable," said Dodd, whose difficult re-election race in Connecticut means he needs to look tough on Wall Street.

The bill was expected to win little or no support from Republicans, setting the stage for still more debate ahead, with analysts expecting no final Senate action until 2010.

The size, complexity and controversy of the Dodd bill mean "it is unlikely that the bill will be passed by the Senate before the end of the year," said policy analyst Brian Gardner at investment firm Keefe Bruyette & Woods.

more at news.yahoo.com ...

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A “bold financial plan” to Dodd is an interest-free loan from one of his donors.