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Archive for 31. December 2009

The Obama Administration takes control of GMAC


In the equivalent of a Friday afternoon drop for a story seeking minimal coverage, the federal government announced they would be sinking an additional $3.8 billion in aid to lending giant GMAC. This infusion of cash gives the federal government majority ownership in another failing loan industry company.

The Obama Administration is proving its intention and loyalty to the banking industry and the fat cats that run them by throwing more money into an industry that America once dominated.

The handout GMAC is taking from the taxpayers is $3.8 billion it is minor considering they took $12.5 billion from the government earlier this year. The Teasury Department said it would increase its company stock from 35 percent to 56 percent making Uncle Sam in charge of the failing loan company.

According to the government, four of the nine board members will be personally picked by the Obama Administration and GMAC will be required to pay $14 billion in loans in order to regain control of the company. Keep reading

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