Super choice there, politicians. Despite receiving federal, state, county, and city bailouts worth billions and billions, GMAC will lose $10b. for 2009.
Meanwhile, the AP continues to spread the false notion that GMAC has a “core auto lending business” — it does not. Chris Whalen of Institutional Risk Analytics explains:
How can GMAC and the Obama White House continue to pretend that Ally Bank is being kept afloat to finance auto sales for GM? Looking at the Q3 2009 financials filed with the FDIC, the primary source of asset growth at Ally Bank seems to be purchases of residential mortgage backed securities funded with advances from the Federal Home Loan Banks, followed by hot money from brokered deposits.
Some 60 percent of Ally Bank’s total loans were in residential mortgages as of that date, not auto loans, while 11% of Ally Bank’s total assets were funded off the FHLBs and some 10% of total assets are funded with brokered deposits.
When GMAC dries up and blows away, I want Bev Perdue to come to Charlotte to apologize and the all the dopey local pols who welcomed GMAC to town to stand in line to do the same.
