Bailout Watch 579: GMAC To Score $3.5b More
The underlying cause of GMAC’s failure was no different than so many other American financial institutions: giant bets on risky mortgages at the height of a real estate bubble. And though that error...
View ArticleGM And Chrysler Racing Towards Captive Finance?
News that GM is considering a number of options for a return to captive finance, has lit a fire under Chrysler CEO Sergio Marchionne, who tells the Detroit News that One of the things that we do not...
View ArticleGM Captive Finance Push Explained: The General Wants More Subprime Business
When we first heard that GM was eying a return to in-house financing, our first reaction was to worry that the potential for falling back into old bad habits can’t be ignored. Clearly our concern...
View ArticleGM’s AmeriCredit Deal: Awaiting Approval
Now that GM’s acquisition of the subprime lender AmeriCredit has had 24 hours to sink in, howls of protest are starting to surface. The charge is being led by Senator Chuck Grassley, who has requested...
View ArticleGM’s Floorplan Banker Could Take Mortgage Arm Bankrupt
There is new trouble brewing in an important part of GM’s business: Ally, the former GMAC. Nearly 75 percent of the credit that GM dealers in the United States use to finance their inventories is from...
View ArticleGuess Who Owned Ally Financial’s ResCap? You Did
Minutes after Ally Financial, the bs-artist formerly known as GMAC, took its Residential Capital bankrupt, David Shepardson tweeted to his followers that all is fine: “GM owns 9.9% of Ally Financial...
View ArticleBailed-Out GM Wants To Help Bailed-Out Ally With Some Of Its Bail-Out Money....
Bailed-out GM might sink $2 to $4 billion into likewise bailed-out Ally Financial to buy some of the lender’s international operations. Ally “ironically wants to use the proceeds to help repay its own...
View ArticleThe Artist Formerly Known As GMAC Comes Back To Mami – Partially
Bailed-out GM agreed to pay about $4.2 billion for the European and Latin American operations of likewise bailed-out Ally Financial, formerly known as GMAC. Ally, 74 percent owned by the U.S....
View ArticleHow A New Generation Of Sub-Prime Auto Financing Could Cause Another Catastrophe
March was the 5th straight month of a SAAR above 15 million vehicles. Industry analysts have explained the strength of the market in a number of ways. The need to replace older vehicles is one (new...
View Article97 Months And Running
8 years to pay off a car? A report by the Wall Street Journal claims that in Q4 of 2012, the average car loan stretched out to 65 months, or just over 5 years. Loan terms were being stretched out over...
View ArticleGM Financial Double Crosses Their Ally
Following in the footsteps of Spanish bank Santander, GM Financial announced that it would enter the prime lending market in 2014. SNL Financial, a subscription-only financial news service, reports...
View ArticleNo Fixed Abode: Putting out a Contract on That Honda
I’ve always been suspicious of the word “ally.” As a child, reading John Toland and William Shirer when most of my classmates were still sounding out words one syllable at a time, I didn’t much care...
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