GMAC Asks for Fresh Lifeline

U.S. NEWS OCTOBER 28, 2009 GMAC Asks for Fresh Lifeline
Lender in Advanced Talks for Third Slug of Taxpayer Cash -- at Least $2.8 Billion By DAN FITZPATRICK and DAMIAN PALETTA

In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.

The Marxist power grab continues....

UPDATE 2-Dem bill urges new US powers over financial firms
Tue Oct 27, 2009 8:16pm EDT
* Financial Services Oversight Council would be set up

* Treasury would head council to monitor, address risks

* Federal Reserve, FDIC would get new authorities

* Obama says bill urgent, crucial (Updates with Obama letter to Frank)

By Kevin Drawbaugh and Rachelle Younglai

FDIC May Need $150 Billion Bailout as Local Bank Failures Mount

Living in the Past

They were blinded by years of rising home prices and low mortgage default rates.

The FDIC fell into the same trap. As recently as March, an internal FDIC memo estimated the cost to cover bank collapses in 2008 would be just $1 billion, dropping to $450 million in 2009. It wasn't even close.

The IndyMac failure alone, which happened four months after that memo was circulated, will cost the FDIC $8.9 billion -- and the bill for all 12 collapses will be about $11 billion, the FDIC says.


For Those Who Think the Mortgage Crisis is Just a Personal Problem

From the Wall Street Journal:

 FDIC Readies for a Rise in Bank Failures


Syndicate content