Tax Dollars Wasted: GMAC Looses Billions

FN: Your tax dollars being wasted as quickly as humanly possible! To properly calculate the true cost of bailing out GM and Chrylser you'd have to include the costs of bailing out GMAC and that awful "cash for clunkers" program.

It will take a long time and a lot of taxes to recoup these vas sums. Our poor children. (Poor, as in they won't have any money.)

GMAC Posts Wider Quarterly Loss as Loan Defaults Rise (Update1): "GMAC Inc., the lender that received $13.5 billion in government bailout funds, reported a $3.9 billion second-quarter loss tied to rising loan defaults and said it may sell part of its insurance operations.

The loss, GMAC’s seventh in the past eight quarters, rose from $2.48 billion a year earlier. Results included a $1.2 billion tax charge caused by converting to a corporation, the Detroit-based company said today in a statement. The auto- finance unit’s loss increased to $727 million from $717 million, while the deficit from mortgage operations shrank to $1.84 billion from $1.9 billion, GMAC said. Excluding one-time charges, GMAC’s quarterly loss was about $400 million.

GMAC said the recession drove up defaults on home and auto loans, and the company will trim operations to save $1 billion annually by 2010. The U.S. took a 35 percent stake earlier this year, enabling GMAC to keep lending to customers of General Motors Corp. and Chrysler Group LLC after the automakers entered bankruptcy. While government incentives boosted car sales and GMAC’s revenue, losses on older loans are hobbling profit."