GM Financial receives subpoena over subprime auto loans


U.S. authorities are investigating General Motors' (NYSE:GM) auto financing arm over subprime auto loans it made and securitized since 2007.

Financial services firms have paid billions of dollars to settle investigations under FIRREA (Financial Institutions Reform, Recovery and Enforcement Act) which probed mortgages pooled into securities in the run-up to the financial crisis, however, this new subpoena suggests that investigators are also looking at the securitization of subprime auto loans.

GM Financial says it was served the subpoena from the DOJ on July 28.

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Comments (20)
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    Given the ingrained Management culture of consumer fraud and cover-ups, this breaking news will hardly surprise long-time students of General Motors! General Motors is the Bank of America of motorcar companies. And that does not augur well for its hapless shareholders. …funfun..
    5 Aug 2014, 05:29 AM Reply Like
  • JDoe20
    , contributor
    Comments (1442) | Send Message
     
    I don't agree . . . it appears more like another great industrial, Dupont, with its very smart and capable female executives. Mary B seems the real deal and is giving consumers new found confidence in GM.
    5 Aug 2014, 09:26 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11315) | Send Message
     
    Eric Holder please resign.

     

    Signed,

     

    America
    5 Aug 2014, 05:50 AM Reply Like
  • june1234
    , contributor
    Comments (4474) | Send Message
     
    He should. Then you can bring back the previous admin that signed the GM bailout into law. Back to reps vs dems, available 24/7 on all channels.check local listings for details
    5 Aug 2014, 07:14 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11315) | Send Message
     
    Blame Bush...even though the current date is 2014.

     

    Why not blame Reagan too?
    5 Aug 2014, 09:21 AM Reply Like
  • june1234
    , contributor
    Comments (4474) | Send Message
     
    blame is for the viewers and voters. Like I said, reps, dems, available 24/7 on all channels.
    5 Aug 2014, 10:03 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    If it is shown ultimately that General Motors' financing arms packaged up rubbish and peddled the paper as something else (in the sleazy style of Bank of America), the ensuing liabilities could be substantial, not only in federal-level fines and settlements, but in private litigation as well. …funfun..
    5 Aug 2014, 05:55 AM Reply Like
  • JDoe20
    , contributor
    Comments (1442) | Send Message
     
    Smearsmear, you appear to be you saying they are guilty?
    5 Aug 2014, 09:16 AM Reply Like
  • lemm
    , contributor
    Comments (1220) | Send Message
     
    funfun go to marketwatch.com there is a story about this being all hype this is no big deal,and most likely the other auto companies will be getting subpoenas as well.
    5 Aug 2014, 01:03 PM Reply Like
  • The_Hammer
    , contributor
    Comments (5110) | Send Message
     
    where is corzine and his stooge underlings?
    5 Aug 2014, 07:18 AM Reply Like
  • Budavar
    , contributor
    Comments (1411) | Send Message
     
    One of the rating agencies, Standard + Poor's, if memory serves,
    warned a few weeks ago

     

    >>> 20+ % of GM car buyers have "junk" or "subprime" status.

     

    Then, I noted, if true, could bite back ==
    as soon as later this year plus next year's EPS could be seriously effected.

     

    Also suggested, any so-called "forward" EPS for GM can not be 'created'
    on neither ethical, nor fundamental basis.

     

    It appears, the chickens come home to roost sooner than expected.
    5 Aug 2014, 07:41 AM Reply Like
  • june1234
    , contributor
    Comments (4474) | Send Message
     
    From Dodge to Nissan 27% of all 13 US auto sales were subprime. http://buswk.co/QFIUay.

     

    You can hear and see their ads on radio and TV all the time. My local Nissan dealer says they guarantee they can put anyone in a new car for less per month then they're paying right now.
    5 Aug 2014, 09:05 AM Reply Like
  • JDoe20
    , contributor
    Comments (1442) | Send Message
     
    Budavar, perhaps you don't know how our legal system works or - at least how it is supposed to work under the US Constitution. I'll give you that this admin and AG seem to have not learned of it or just plain ignore it.
    5 Aug 2014, 09:20 AM Reply Like
  • crash9010
    , contributor
    Comments (183) | Send Message
     
    I am curious Funfun. Do you have some personal vendetta against GM? Seems like on every article or news item you show up to say something negative often more than just negative analysis.
    5 Aug 2014, 08:48 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    We have no personal animus against this corporation or any individual executive or Manager of Director thereof. We simply believe the destructive CHEAT-to-COMPETE culture ingrained in this corrupt car-maker will punish GM shareholders for many years to come, not to mention deceiving, if not defrauding customers and would customers.

     

    It's our view the prospects for this inferior-managed enterprise is largely negative.

     

    …funfun..
    5 Aug 2014, 09:41 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    In the meantime, folks, the price of these dreary shares of this dreary car conglomerate continue to demonstrate an in-depth dreariness, trading moments ago @ 33.22. Why, GM has soared a total of 22 cents, two dimes and two pennies since its I.P.O. price of 33.00 in November 2010. That strikes us a tad bit "negative", given the overall market has soared since then.

     

    …funfun..
    5 Aug 2014, 02:12 PM Reply Like
  • JDoe20
    , contributor
    Comments (1442) | Send Message
     
    "We have no personal animus against this corporation or any individual executive or Manager of Director thereof. We simply believe the destructive CHEAT-to-COMPETE culture ingrained in this corrupt car-maker will punish GM shareholders for many years to come, not to mention deceiving, if not defrauding customers and would customers."

     

    Yes, you certainly don't come off as being personal by implying they run a cheating, corrupt organization defrauding its customers. And your proof is what?

     

    In the name of the integrity you often say GM execs lack, who comprises the WE since your profile says you are an individual investor? The Forum would love to understand who your organization is??
    9 Aug 2014, 10:52 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    Folks, if the loyal supporters and shills for GM Management believe that this car company is run by women and men of the highest integrity and greatest competence, who consistently engage in ethical business practices always with an intense focus on shareholders and customers, that is fine with us. No objection. If they truly think the culture of General Motors is built on deep down honesty and honor, sans cover-ups or even a hint of inappropriate executive behaviour, that's O.K. with us. And if they truly believe GM cars are the best in the world, superlative design and engineering, free of any defects, deadly or not, that is fine with the undersigned. Each to his or her own opinion.

     

    We simply believe otherwise, and will continue to speak up and exchange thoughts with fellow investors.

     

    …funfun..
    10 Aug 2014, 12:38 AM Reply Like
  • JDoe20
    , contributor
    Comments (1442) | Send Message
     
    Again, in the name of integrity you so often invoke, who is the "we" you are posting under or are you an individual investor like you state in your SA Profile? I know you wouldn't want to mislead others, so?

     

    For the record, I am an individual investor and don't want to misrepresent myself to other commenters as anything other than just me, in my opinions. Additionally, I am not a GM shill as your "attack", as you would call it, on us who simply ask you valid questions regarding your endless negative posts on GM.
    10 Aug 2014, 10:07 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4865) | Send Message
     
    On the subject of the corruption which permeates this Detroit-based car company in decline, Readers might like to see the insightful thoughts of David Stockman:

     

    STOCKMAN'S BEST OF THE WEEK, STOCKMAN'S WOODSHED
    The Stench Of Crony Capitalist Corruption At GM
    by David Stockman • June 20, 2014

     

    "So GM is now trying to blame its ignition switch safety scandal on a low-ranking 'lone wolf' engineer. That doesn’t even merit an 'oh puleese'! Instead, it deserves scorn, derision and sharp poke in the eye.

     

    "The fact is, no 'lone wolf' has ever survived long enough to collect a single paycheck at General Motors anytime during the last century. It has always been the ultimate corporate bureaucracy ever since the legendary Alfred P. Sloan Jr. organized it that way back in the 1920s.

     

    "After all, GM did originally master the art of mass production. You don’t roll-off the assembly line 1500 cars in one day from a three shift operation without layers upon layers of management, and without procedural manuals and operational paper flows that in the pre-computer era took down a good sized forest every month.

     

    "And that was in GM’s heyday before it liquidated its competitive advantage and 50% market share in the 1960s and early 1970s in order to pacify and drastically over-compensate its UAW workers. Yet during its long, slow, inexorable decline over the three decades ending in its thundering 2009 bankruptcy, the brilliant managerial structures that Sloan had pioneered atrophied, festered and putrefied into the most bloated, rigid, and ass-covering bureaucracy that the business world has ever known…"

     

    …funfun..
    10 Aug 2014, 08:09 AM Reply Like
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