Gmac

The U.S. government is hoping that Monday's bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally's auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally's bailout from 2008 and 2009, Ally said in a statement.

DETROIT - The United States government is hoping that Monday's bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally's auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally's bailout from 2008 and 2009, Ally said in a statement.

DETROIT -- General Motors Corp. was expected to announce today that it is selling a majority stake in its finance arm to a private investor group, The Wall Street Journal reported. The group, led by Cerberus Capital Management, will pay about $8 billion for the stake in General Motors Acceptance Corp. , the newspaper said yesterday in a report on its website, citing people familiar with the matter. GM spokesman Jerry Dubrowski told The Associated Press the report was speculation.

The U.S. government is hoping that Monday's bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally's auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally's bailout from 2008 and 2009, Ally said in a statement.

NEW YORK - General Motors Corp.'s financing arm said yesterday it will temporarily waive some dealer fees and make $5 billion available for loans to a wider pool of potential car buyers in a bid to halt the slide in US vehicle sales. Car dealers nationwide have been hammered by low consumer confidence and worries among potential buyers about the US auto industry's future. A lack of available credit also has left many consumers who might be looking for a new vehicle without the affordable financing to make a deal.

DETROIT - GMAC Inc. posted a wider second-quarter loss of $3.9 billion yesterday as it shifted from being primarily an auto- and mortgage-loan company to an online retail bank. In the same period a year ago, the company reported a loss of $2.48 billion. Revenue during the 2009 second quarter fell 28 percent to $1.27 billion, from $1.76 billion. The bulk of the latest quarterly loss stems from a $1.6 billion charge related to the company’s mortgage business. GMAC also incurred a $1.2 billion tax charge on its conversion from a partnership, or LLC, to a privately held...

WASHINGTON — The Obama administration’s pay czar is limiting 2010 compensation for top executives at GMAC Inc. because the auto finance giant continues to lose money and can’t yet repay its $16.3 billion taxpayer bailout, according to people familiar with the negotiations. Only one of the top 25 earners at GMAC will earn more than $500,000 in cash, and CEO Michael Carpenter will receive only stock compensation and no cash, said the people, who spoke on condition of anonymity because they were not authorized to discuss the talks.

WASHINGTON - All but one of the 19 largest banks have raised the extra capital cushion regulators said they would need to withstand a deeper recession - a sign, the Treasury secretary said, of how much the financial system has improved since the crisis began. But the banks’ capital needs were based on unrealistic economic projections. Some have proved too rosy, others too grim. For example, the test envisioned unemployment reaching 8.9 percent this year; it stands at 10.2 percent.

DETROIT - The United States government is hoping that Monday's bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally's auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally's...

GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors Corp. and Cerberus Capital Management. It also raises a number of questions, including who will control GMAC going forward and how much its business model might change. GMAC, which is 49-percent owned by GM, provides auto financing to GM customers and dealerships. The Federal Reserve on Wednesday approved GMAC's application to become a bank holding company - allowing the lender to qualify for the government's...

One day after it was among five major banks sued by Massachusetts over deceptive foreclosure practices, GMAC Mortgage said Friday that it will stop purchasing new mortgage loans written by third parties in the state. The mortgage origination and servicing arm of Ally Financial Inc. said it will honor all commitments with correspondent lenders and wholesale brokers through Monday. The bank, formerly known as General Motors Acceptance Corp., is 74 percent owned by the U.S. government, GMAC Mortgage will continue to lend directly to homeowners in Massachusetts.

NEW YORK — GMAC Financial Services yesterday posted its first quarterly profit in more than a year and announced plans to rename itself Ally Financial Inc., as the consumer lender aims to put a failed foray into the mortgage business behind it. The Detroit company reported first-quarter earnings of $162 million, compared with a year-earlier loss of $675 million, as its mortgage unit swung to a pretax profit and its core automotive business posted...

WASHINGTON — The Obama administration’s pay czar is limiting 2010 compensation for top executives at GMAC Inc. because the auto finance giant continues to lose money and can’t yet repay its $16.3 billion taxpayer bailout, according to people familiar with the negotiations. Only one of the top 25 earners at GMAC will earn more than $500,000 in cash, and CEO Michael Carpenter will receive only stock compensation and no cash, said the people, who spoke on condition of anonymity because they were not authorized to discuss the talks.

WASHINGTON - The government gave GMAC Financial Services another $3.8 billion in cash and took a majority stake in the lender, aiming to stabilize the company as it struggles with big losses in its home mortgage unit. The fresh infusion is on top of $12.5 billion in taxpayer money Detroit-based GMAC has already received from the government. The new aid will boost the federal government’s ownership in GMAC to 56 percent, from 35 percent, and means the United States now holds a majority stake in three companies that it bailed out with taxpayer funds - GMAC,...

NEW YORK - GMAC Financial Services is expected to receive $3.5 billion more in federal aid to further stabilize the automotive lender, The Wall Street Journal reported yesterday. The announcement is expected within days and would coincide with GMAC taking more steps to absorb losses related to its mortgage operations, the newspaper reported, citing people familiar with the situation. GMAC, which is based in Detroit, has received $12.5 billion in taxpayer money and is 35 percent owned by the federal...

WASHINGTON - All but one of the 19 largest banks have raised the extra capital cushion regulators said they would need to withstand a deeper recession - a sign, the Treasury secretary said, of how much the financial system has improved since the crisis began. But the banks’ capital needs were based on unrealistic economic projections. Some have proved too rosy, others too grim. For example, the test envisioned unemployment reaching 8.9 percent this year; it stands at 10.2 percent.

NEW YORK - GMAC Financial Services LLC, the financing arm of automaker General Motors Corp. , yesterday said chairman J. Ezra Merkin is stepping down effective immediately, as it names a new board of directors. GMAC is naming the new board under terms of its approval by the Federal Reserve last week to become a bank holding company. Although Merkin stepped down yesterday, GMAC said it has until March 24 to name a board. A GMAC spokeswoman declined to say why Merkin was stepping down now. Lenard Tessler, managing director of private equity firm Cerberus Capital Management LP, a...

NEW YORK - The Treasury Department is set to inject billions more dollars into GMAC Financial Services. The Wall Street Journal said Treasury will lend GMAC more than $7 billion, a step toward making it a quasi-federal entity with the power to offer low-interest loans to buyers of GM and Chrysler cars. The Detroit News put the amount at $7.5 billion. GMAC failed a bank "stress test" this month, and Treasury mandated it raise $11.5 billion within six months. GMAC received $5 billion from the Troubled Asset Relief Program in December, after the government approved its...

DETROIT - GMAC Inc. posted a wider second-quarter loss of $3.9 billion yesterday as it shifted from being primarily an auto- and mortgage-loan company to an online retail bank. In the same period a year ago, the company reported a loss of $2.48 billion. Revenue during the 2009 second quarter fell 28 percent to $1.27 billion, from $1.76 billion. The bulk of the latest quarterly loss stems from a $1.6 billion charge related to the company’s mortgage business. GMAC also incurred a $1.2 billion tax charge on its conversion from a partnership, or LLC, to a privately held corporation.

NEW YORK - The Treasury Department is set to inject billions more dollars into GMAC Financial Services. The Wall Street Journal said Treasury will lend GMAC more than $7 billion, a step toward making it a quasi-federal entity with the power to offer low-interest loans to buyers of GM and Chrysler cars. The Detroit News put the amount at $7.5 billion. GMAC failed a bank "stress test" this month, and Treasury mandated it raise $11.5 billion within six months. GMAC received $5 billion from the Troubled Asset Relief Program in December, after the government approved its...