GMAC

Chicago sheriff says no to enforcing foreclosures until banksters prove those foreclosures were handled ‘properly and legally’

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CHICAGO – Two of the largest U.S. mortgage servicers have said they will resume home foreclosures, but a big-city sheriff has news for them: he won’t enforce their foreclosure evictions.

The sheriff for Cook County, Illinois, which includes the city of Chicago, said on Tuesday he will not enforce foreclosure evictions for Bank of America Corp, JPMorgan Chase and Co. and GMAC Mortgage/Ally Financial until they prove those foreclosures were handled “properly and legally.”

Bank of America, the largest U.S. mortgage servicer, and GMAC, on Monday both announced rollbacks from their foreclosure moratoriums.

The announcement by Cook County Sheriff Thomas Dart comes after weeks of damaging accusations of shoddy paperwork that may have caused some people to be illegally evicted from their homes.

“I can’t possibly be expected to evict people from their homes when the banks themselves can’t say for sure everything was done properly,” Dart said in the statement.

“I need some kind of assurance that we aren’t evicting families based on fraudulent behavior by the banks. Until that happens, I can’t in good conscience keep carrying out evictions involving these banks,” he added.

Read moreChicago sheriff says no to enforcing foreclosures until banksters prove those foreclosures were handled ‘properly and legally’

Treasury to continue bailing out firms, industries by looting taxpayers’

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It seems that the US government and the Federal Reserve are looting taxpayers’ until there is nothing left.

If you take into account what Peter Schiff and Lindsey Williams are telling us….

– Peter Schiff: US Dollar is on the verge of collapse; This is hyperinflation; This is Zimbabwe (12/17/2008):
“I am a 100% convinced that anybody who has their wealth in US Dollars will be just as broke as the people who had their money with Madoff.”

– Peter Schiff on CNBC: The government is pouring gasoline on a fire that it set (12/29/08):
“We are in the process of creating another Great Depression.”

– Lindsey Williams: The Dollar And The US Will Collapse; Saudi Arabia And Dubai Will Fall; US Will Be Third World Country; The Greatest Depression Is Coming

…with the odd timing that there is an ‘Army combat unit to deploy within the U.S.’ plus ‘Pentagon: 20,000 Troops to Bolster Domestic Security’ …

((Of course those troops need training: Northcom Combat Team Conducts “Humanitarian Support” Exercise in Maryland: “The Armed Forces Press Service has initiated a propaganda campaign designed to convince the American people that deploying the 3rd Infantry Division in the United States in violation of the Posse Comitatus Act is a good thing.”))

…then it does not sound like a crazy conspiracy theory anymore that the government will deploy more and more soldiers within the U.S. in preparation for civil unrest in case US citizens realize that they are betrayed by the government and the Fed, who ‘are’ destroying the future of the US by creating massive debt and hyperinflation, which will ultimately lead to the total collapse of the US.

Soon the government and the Fed will have turned the U.S. into a ‘Third World’ country.

Source: Bloomberg

Treasury Opens Door to Aid for Broad Array of Firms, Industries

Jan. 1 (Bloomberg) — The U.S. Treasury threw the door open to taxpayer financing for a widening array of companies and industries by drafting broad guidelines on aid to the auto industry.

The Treasury’s guidelines, published yesterday, would let officials provide funds to any company they deem important to making or financing cars. That leaves room for the government to provide money from the Troubled Asset Relief Program beyond loans already committed to General Motors Corp., GMAC LLC and Chrysler LLC.

“There are going to be other industries that are going to have just as good a case,” as the auto companies, former St. Louis Federal Reserve Bank President William Poole said in an interview on Bloomberg Television. “We don’t know what those other industries are going to be. Where does this process stop?”

Shares of auto suppliers including American Axle & Manufacturing Holdings Inc. and Lear Corp. jumped yesterday after Treasury announced the guidelines. The Motor & Equipment Manufacturers Association has been lobbying for the use of federal funds as a backstop in case parts makers can’t collect money the auto manufacturers owe them.

Read moreTreasury to continue bailing out firms, industries by looting taxpayers’

Treasury to Buy $5 Billion GMAC Stake, Expand GM Loan

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Bailing out zombies with taxpayers’ money. But you can trust the government with your money.

“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said 21 months ago.

Treasury Secretary Henry Paulson declared that the current turmoil in markets and financial institutions ultimately will “make things better.” (September 15, 2008)

As you see Henry Paulson is a real ‘expert’ you can believe in.


A GMAC Real Estate sign, attached to a sign advertising 0% down financing, is posted in the front yard of a home in Norcross, Georgia, on Sept. 12, 2007. Photographer: Chris Rank/ Bloomberg News

Dec. 29 (Bloomberg) — The U.S. Treasury committed $6 billion to support GMAC LLC, the financing arm of General Motors Corp., the latest step in the government’s widening effort to keep the largest U.S. automaker out of bankruptcy.

Treasury said it will purchase a $5 billion stake in GMAC, and lend $1 billion to GM so the automaker can participate in a rights offering at GMAC to support the lender’s reorganization as a bank holding company. The loan is in addition to $13.4 billion the Treasury agreed earlier this month to lend to GM and Chrysler LLC.

The fresh capital from the Treasury’s $700 billion Troubled Asset Relief Program will enable GMAC to expand lending to car buyers, which in turn may help save GM. The company’s U.S. sales plunged 22 percent this year through November after GMAC — which financed about 35 percent of GM’s retail customers last year — ran short on cash and limited loans to people with only the best credit. The Treasury stepped in after Congress failed to pass an auto industry bailout earlier this month.

Read moreTreasury to Buy $5 Billion GMAC Stake, Expand GM Loan

GMAC Becomes a Bank as Fed Bolsters Plan to Save GM

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“These guys should be in Chapter 11,” said Julian Mann, a mortgage- and asset-backed bond manager at First Pacific Advisors LLC in Los Angeles, referring to the U.S. bankruptcy code. Mann’s firm oversees $9 billion. “We’ve now gotten into the business of discouraging prudence and encouraging risky behavior and irresponsibility.”


A GMAC Real Estate sign, attached to a sign advertising 0% down financing, is posted in the front yard of a home in Norcross, Georgia, on Sept. 12, 2007. Photographer: Chris Rank/ Bloomberg News

Dec. 25 (Bloomberg) — GMAC LLC won Federal Reserve approval to become a bank holding company, a switch that may enable the money-losing auto and home lender to tap U.S. financial bailout programs and help keep General Motors Corp. in business.

The Fed used emergency powers yesterday to grant Detroit- based GMAC’s request, citing turmoil in financial markets and the potential impact on GM, the biggest U.S. automaker, which has warned it’s running out of cash. GM and Cerberus Capital Management LP, GMAC’s majority owner, will give up control of the lender to comply with federal rules on who can own banks.

Saving GMAC is a step toward salvaging GM, which received a temporary bailout earlier this month. The $9.4 billion loan will sustain GM at least until January, when President-elect Barack Obama must find a more permanent way to save millions of auto industry jobs and avoid deepening the year-old recession. Dealers and analysts say a GM rescue is more likely to work if GMAC is still around to make car loans, which the Fed’s action ensures.

Read moreGMAC Becomes a Bank as Fed Bolsters Plan to Save GM

GMAC Leaves Individuals Holding Car Lender’s Junk

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A GMAC Real Estate sign, attached to a sign advertising 0% down financing, is posted in the front yard of a home in Norcross, Georgia, on Sept. 12, 2007. Photographer: Chris Rank/ Bloomberg News

Nov. 7 (Bloomberg) — GMAC LLC may leave thousands of individuals on the hook for about $15 billion of junk-rated debt unless the auto and home lender finds a way to pay its bills.

GMAC, the largest lender to car dealers of General Motors Corp., issued more than $25 billion of debt called SmartNotes over the past decade to retail investors. While GMAC has paid off the debts as they matured, five straight unprofitable quarters raised doubt about GMAC’s survival, and SmartNotes due in July 2020 have lost about three-quarters of their value.

“An investment like this is totally unsuitable for the retail investor,” said Sean Egan, president of Egan-Jones Ratings Co. in Haverford, Pennsylvania, who rates GMAC bonds junk, or below investment grade. “You’re selling it to the widows and orphans who think of GMAC as being this strong, long- standing corporation when the reality is far from that.”

GMAC’s losses since mid-2007 total $7.9 billion, driven by record home foreclosures and auto sales that GM has called the worst since 1945. Stomaching some of Detroit-based GMAC’s deficit are individuals who purchased SmartNotes through brokers at firms including Merrill Lynch & Co., Fidelity Investments and Citigroup Inc.’s Smith Barney unit.

Read moreGMAC Leaves Individuals Holding Car Lender’s Junk