GMAC is the financing arm of GM.
So, GM is sucking wind. If GM gets a cold, GMAC gets pneumonia.
Now that the U.S. governement is in the business of bailing out failed businesses, GMAC has announced that it is now a bank. And therefore, qualified for federal bailout money. Which it took its first taste of last week. $5 billion of U.S. taxpayer money.
Oh, but wait. The chairman of GMAC has now had to resign. Ezra Merkin. He founded Ascot Partners, LLP. A hedge fund. They are supposed to manage your millions and make you more millions. At a charge of 1.5 percent a year. His strategy? He invested virtually all of Ascot funds with one Bernard L. Madoff. As in made off with the money. So, Ascot Partners, LLP is screwed, and so are it's formerly wealthy but continually stupid investors. Mr. Merkin has some splainin' to do. Not to kick a man while he's down, but look up Merkin: http://en.wikipedia.org/wiki/Merkin
Oh, but wait. The board of GMAC has now appointed Lenard Tessler as its new Chairman. Lenard Tessler is a Managing Director of Cerberus Capital Management. Cerberus owns Chrysler.
So, now, GMAC is not restricted to financing only GM autos. It may also finance other things, like Chrysler autos.
I feel so much better now.