jsc173

A Fed About-Face on GMAC?

This is the epitome of non-sensical government intervention.

Tens of billions have been doled out to large banks, in theory to stimulate granting credit, yet the iceberg hasn't thawed. Few of those banks (Chase excepted) did much in the way of supporting the auto industry. Why? Because the maufacturing arms always subsidized the financing arms. How many banks would make 0% loans? Or provide floor plan financing at low rates?

So why is Treasury creating an opportunity for GMAC to do more insane financing?

Better yet, since GMAC was amongst the more aggressive mortgage lenders, why are they being favored when a couple hundred savings and loans (who didn't do stupid mortgage lending) are still waiting for TARP money?