GMAC Replaces CEO, Considers Return To The Trough
Nov16GMAC, once one of the most stable names in the finance industry, may be heading back to the trough for its third infusion of federal cash assistance.
Despite capital infusions totalling $13.5 billion over the past year, the finance giant is still listing badly, and has lost $5.3 billion during the first months of 2009.
GMAC has recruited Michael Carpenter from Citibank to accelerate the company’s turnaround. He replaces Al de Molina, who held the top spot for a little over a year and a half, overseeing GMAC’s conversion into a bank, which made it eligible for TARP assistance.
What do the taxpayers get from all this? Very possibly another opportunity to give the troubled company a third pass at the trough, which looks very possible considering the gravity of GMAC’s finances during a continuing recessionary environment.
See full article by Colin Barr of Fortune
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Author : Bob Chiore
Author's Website | Articles From This AuthorAs the business editor of 73 Wire, I am intrigued by the impact of government policy on business and markets. I am a career finance professional with 30 plus years in corporate treasury management.
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