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Great idea!

Texan

Well-known member
Why don't we let Government Motors use some of OUR money to buy a subprime lender so they can sell cars to people who can't afford to pay for them... :???:

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Grassley Calls for Probe of General Motors' Plan to Acquire AmeriCredit

By Vivek Shankar and David Welch - Jul 22, 2010

U.S. Senator Chuck Grassley asked the Special Inspector General for TARP to look into the details of General Motors Co.’s plan to buy a subprime auto lender and the Treasury Department’s involvement in the acquisition.

GM and Fort Worth, Texas-based AmeriCredit Corp. announced the deal today that is intended to help the automaker reach more customers with damaged credit ratings or who want to lease a new car or truck. The purchase will be made with cash GM has on hand, Chief Financial Officer Chris Liddell said.

“If GM has $3.5 billion in cash to buy a financial institution, it seems like it should have paid back taxpayers first,” Grassley, a Republican from Iowa, said in a statement on his website. “After GM’s experience with GMAC, which left GM seeking a taxpayer bailout, you have to think the company and, in turn, the taxpayers would be better off if GM focused on making cars that people want to buy and stayed clear of repeating its effort to make high-risk car loans.”

GM’s former lending arm, now known as Ally Financial Inc., lost $17 billion on subprime mortgages.

GM sold 51 percent of Detroit-based GMAC to private-equity firm Cerberus Capital Management LP in November 2006 as the nation’s biggest automaker ran low on cash. Since then, GM has had to rely on outside lenders, including Ally, which is 56 percent owned by the U.S.

Detroit-based GM filed for bankruptcy court protection last year and is now 61 percent owned by the U.S.



http://www.bloomberg.com/news/2010-07-22/grassley-seeks-probe-of-gm-s-3-5-billion-bid-for-auto-lender-americredit.html
 

Tam

Well-known member
OMG this Republican doesn't want poor people with bad credit to buy cars they can't afford that more than likely they will loose in a year when they can't make the payments. :shock: How dare he. :wink:
 
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