GMAC Motors Toward Third TARP Trip
Today’s Wall St. Journal has a report titled “GMAC Asks for a Fresh Lifeline” by Dan Fitzpatrick and Damian Paletta that states, “The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008…” This would be in addition to the previous Treasury funds poured into GMAC in Dec 2008 and May 2009.
How many chances are they supposed to get? Treasury has opted to let CIT fend for themselves, GMAC is poised to get another lifeline. Where is the consistency from the government?
If GMAC’s business operations are viable with some restructuring, they’ll be bought or reorganized in bankruptcy. If they aren’t viable, why on earth should the US Treasury throw good money (that we don’t have) after bad?
This post is a slight edit of what I just sent to my Senators and Congressman. Those included, " I urge you to apply whatever pressure you can to the Treasury Secretary to stop this outright waste of public money spent propping up a failed business." Feel free to lift from it if you want to do the same.