Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

US Treasury Investigates GMAC, er, Ally, er......Itself

Print comment Post Comments
CATCH-22
DailyFeed
After a GMAC employee admitted approving thousands of foreclosures without reading the paperwork first, the US Treasury Department's special investigator, Neil Barofsky, is investigating the company.

GMAC Mortgage is part of Detroit-based Ally Financial Inc., and majority-owned by...oh, right...um...the federal government.

Ally received three federal bailouts totaling $16.3 billion as part of the bankruptcy of former Ally owner, General Motors. The government now owns 56% of GMAC's common shares, plus $14 billion of other GMAC investments.

Here's where it gets tricky.

Treasury wants Ally to stabilize financially so it can repay its federal loans and return to private control.

But, at the same time, Treasury is required by law to aid homeowners who face foreclosure.

So, what we have now is best described by the photo below:



Best of luck, Mr. Barofsky.
POSITION:  No positions in stocks mentioned.
TICKERS:  NYSE:BAC, NYSE:C, NYSE:GM, NYSE:GS, NYSE:JPM   

TICKERS