GMAC could stick it to the taxpayer to the tune of $6 BILLION

Detroit Free Press:
The congressional panel overseeing federal bailout money estimates at least $6.3 billion of the $17.2 billion in taxpayer aid to GMAC may never be repaid and criticized the Treasury Department for not demanding the sweeping changes it imposed on as conditions for their government-backed restructurings of General Motors and Chrysler.

For example, the Treasury Department did not wipe out GMAC’s shareholders as it did with GM and Chrysler. Neither did Treasury demand a detailed plan for returning GMAC to profitability or an increase in consumer lending to a specific level.

“Both GMAC and Treasury insist the company is solvent and will not require any additional bailout funds, but taxpayers already bear significant exposure to GMAC and the Office of Management and Budget currently estimates that $6.3 billion or more may never be repaid,” the Congressional Oversight Panel wrote in an executive summary.

Link to full article:
GMAC some aid not likely to be repaid

Yes America, the incompetent legacy of Turbo Tax Geithner continues. It is so comforting that both GMAC and Timmy's Treasury "insist" that the company is solvent and will not require any additional bailout funds. The U.S. Government (a.k.a. taxpayers) owns 56% of this "solvent" company.

Welcome to the new world, Treasury hands out $17 billion, does not wipe out existing equity holders and does not require a viable plan from GMAC. Existing equity holders should have been cut off at the knees as that is the natural order of things. Not requiring a viable plan from GMAC is classic Geithner. Had the plan been required, Tim would have required an aide to handle the review.

In addition, Geithner did not require a detailed explanation on how GMAC would use the $17 billion. Yes America, welcome to the new world where incompetence reigns and the irresponsible are handsomely rewarded.

Christopher, things are not as they appear...pull up the anchor...