Welcome to the North American Subaru Impreza Owners Club Friday August 18, 2017
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads. 
Thread Tools Display Modes
Old 02-05-2010, 12:49 PM   #1
Scooby Guru
Member#: 73805
Join Date: Nov 2004
Location: NEPA
2017 911 Turbo
Miami Blue

Default Taxpayer Owned GMAC Reports Record Q4 Loss

GMAC reported this morning a record Quarter 4 loss of $3.9 billion from ongoing operations, compared with a profit of $7.5 billion a year earlier.

A net loss of $5.0 billion bought the total full-year net loss to $10.3 billion, compared to net income of $1.9 billion in 2008.

Results for the 2009 fourth quarter and full year were largely affected by losses related to GMAC’s reckless lending practices in its mortgage operations.

“Key steps during the year included: diversifying the profitable automotive finance business with the addition of Chrysler; launching the Ally Bank brand, which is a key part of our funding profile; strengthening our capital and liquidity positions; and implementing major restructuring actions to minimize risk related to the legacy mortgage business,” said GMAC Chief Executive Officer Michael A. Carpenter.

The U.S. Department of the Treasury last December provided an additional $3.8 billion in capital from taxpayers to GMAC to keep it solvent, in addition to almost $14 billion previously forwarded.

Treasury under its financial health check assessment, the so-called Supervisory Capital Assessment Program (SCAP), said that additional capital was needed for tottering GMAC, which was suffering from bad loans and collapsed residual values for leases of General Motors vehicles, as well as failed loans in the real estate markets.

As part of the additional funds, Treasury restructured its investment in GMAC “to protect taxpayers and put GMAC in a position to raise private capital and pay back taxpayers as soon as practicable.” As a result, U.S. taxpayers now own 56% of GMAC’s common equity, and $2.7 billion in 8% coupon trust preferred securities, and $11.4 billion in 9% coupon mandatory convertible preferred stock. Taxpayer ownership could increase to 70%, according to GMAC.

Taxpayers are clearly at risk here, given their already large 50% holding of General Motors Company, which lost $1.2 billion in its latest quarter.

The Obama Administration, facing unanimous Republican opposition, has thus far been unable to implement any reforms whatsoever in financial regulation 16 months after the collapse of the Lehman Brothers and AIG, among others, in the fall of 2008.

Legacy issues weighed down GMAC, even as it picked up new business from Chrysler dealers.

The recent U.S. Supreme court decision allowing banks and offshore companies to spend unlimited amounts of money supporting — or opposing — candidates in upcoming elections, virtually assures that there will be reforms, according to critics.

GMAC said in a statement that it “remains focused on its core strength of providing automotive financing to GM and Chrysler dealers and customers. As of Dec. 31, 2009, GMAC’s U.S. wholesale penetration for General Motors dealer stock was 91%, compared to 85% at year-end 2008. U.S. retail penetration for GM was 30%, up from 4.7% in the fourth quarter of 2008, when the company had restricted its retail lending as a result of challenges in the credit and capital markets.

GMAC also said it is expanding lending to Chrysler dealers and customers. At year end, GMAC had completed the underwriting process for 1,474 U.S. Chrysler dealers that applied for standard wholesale credit lines and approved 94%. GMAC’s U.S. wholesale penetration for Chrysler dealer stock increased to 77% on Dec. 31, 2009, up from 67% on Sept. 30, 2009.

During the fourth quarter of 2009, GMAC provided $894 million of new Chrysler retail loans, compared to $721 million in the prior quarter. GMAC’s U.S. retail penetration for Chrysler during the fourth quarter improved to 26%, compared to 13% in the third quarter.

In November 2009, GMAC announced that its head had departed and a new CEO, Michael A. Carpenter, was coming in from the financial services industry and taxpayer subsidized Citigroup. The appointment of Carpenter, a consummate Wall Street insider, with disputed accounts of whether the previous CEO, Alvaro de Molina, was fired or had resigned, raised questions about the reckless practices of Wall Street, which is responsible for the ongoing Great Recession and the collapse of the global banking system.
* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.
Old 02-05-2010, 01:53 PM   #2
Scooby Specialist
Member#: 8124
Join Date: Jul 2001
Location: Denver, Colorado
1998 Old Grey Mule
Regacy Rype R


I knew I shouldn't have invested in GMAC.
Oh wait...

Well maybe we can just raise taxes to scare up another round of capital?
monovich is offline   Reply With Quote
Old 02-05-2010, 03:35 PM   #3
Superglue WRX
Scooby Specialist
Member#: 106275
Join Date: Jan 2006
Chapter/Region: BAIC
Location: San Jose, CA
New Chevy SUV
Government Motors White


Superglue WRX is offline   Reply With Quote
Old 02-05-2010, 05:46 PM   #4
Scooby Guru
Member#: 935
Join Date: Feb 2000
Chapter/Region: MWSOC
Location: ಠ_ಠ
Tony Mason Fan Club


Autonews needs to hire el_camino to do their MS Paint work.
Yotsuya is offline   Reply With Quote
Old 02-06-2010, 01:22 AM   #5
Scooby Guru
Member#: 178811
Join Date: Apr 2008
Chapter/Region: MAIC
Location: MoCo
2011 White Corolla
Over 400hp


Originally Posted by monovich View Post
I knew I shouldn't have invested in GMAC.
Oh wait...

Well maybe we can just raise taxes to scare up another round of capital?
I 'd.
OrbitalEllipses is offline   Reply With Quote
Old 02-08-2010, 11:12 AM   #6
Scooby Specialist
Member#: 19399
Join Date: May 2002
Chapter/Region: Tri-State
Location: Lansdale
2013 LRPE M3/Touareg


GMAC is going down the drain...

They have some very shady people running that place!
WHAT is offline   Reply With Quote
Old 02-10-2010, 03:24 PM   #7
Scooby Specialist
Member#: 22863
Join Date: Aug 2002
Chapter/Region: MAIC
Location: The Land of Mary
2015 WRX Premium CWP


Governments and unions are the two most efficient entities on earth. GMAC can't possibly fail. They just need a little more time and money to sort things out...
rexster is offline   Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Subaru Reports Record Breaking Sales For August 2008 Fireball1 News & Rumors 39 09-09-2008 10:21 PM
Subaru Reports Record April Retail Sales AVANTI R5 News & Rumors 24 05-29-2008 03:23 PM
GM posts record 3Q loss after $39 billion charge BlownGasket Non-Subaru News & Rumors 5 11-07-2007 05:59 PM
Audi of America, Inc. Reports Record Sales for January 2007 NYCshopper Non-Subaru News & Rumors 3 02-01-2007 12:25 PM
Ford reports record net loss of $12.7 billion in 2006 NYCshopper Non-Subaru News & Rumors 6 01-25-2007 05:53 PM

All times are GMT -4. The time now is 01:11 AM.

Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2017 Axivo Inc.
Copyright ©1999 - 2017, North American Subaru Impreza Owners Club, Inc.