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WASHINGTON (Reuters) - The Obama administration said on Wednesday it would provide GMAC Financial Services an additional $3.8 billion of government aid, raising the government's stake in the company to 56 percent from 35 percent.

"These actions offer the best chance for GMAC to complete its overall restructuring plan and return to the private capital markets for its debt financing and capital needs in 2010," the Treasury Department said in a statement.

GMAC had already received $12.5 billion of aid from the U.S. government since December 2008. The latest cash infusion brings total taxpayer aid to $16.3 billion.
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So what are they doing with all that money? Is there a site that tells us?
 

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I think that they are still struggling with mortgage losses. While I hate to see this happening again - the banks have done an OK job of repayment. Maybe this will work out OK as well.
 

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WASHINGTON (Reuters) "These actions offer the best chance for GMAC to complete its overall restructuring plan and return to the private capital markets for its debt financing and capital needs in 2010," the Treasury Department said in a statement.
I bet they said this same thing when they got their first 12.5 billion. When does it all stop!?? As for knowing where it all goes, good luck. I am appalled that the government shells out this kind of money and seems to have no clue how it is used. I guess this is the transparency we were promised. :confused:
 

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Maybe someday all this money will actually be used to buy up toxic mortgages/assets like it was originally intended to do.
 

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the banks have done an OK job of repayment.
I wonder if that is partly due to the brilliance of creating this "pay czar" that's out there. Poke enough sticks at these bailout executives to make them really, really want to be running private companies again and, as taxpayers, we find ourselves getting paid back in full in a rather timely manner.

Win-win. Government gets out of the banking business and the taxpayer investment is paid back.

My biggest worry is that "too big to fail" still exists and we're just setting ourselves up for another round of bailouts in the future.
 

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I wonder if that is partly due to the brilliance of creating this "pay czar" that's out there. Poke enough sticks at these bailout executives to make them really, really want to be running private companies again and, as taxpayers, we find ourselves getting paid back in full in a rather timely manner.

Win-win. Government gets out of the banking business and the taxpayer investment is paid back.

My biggest worry is that "too big to fail" still exists and we're just setting ourselves up for another round of bailouts in the future.
I'm afraid we set the tone for future big banks hyjinx. It's like being a spoiled little rich kid knowing that daddy is there to bail us out should we screw up. I don't like it.

Everytime I read an article on bailouts or any government spending program I subsitute the words " MY MONEY" in place of bailout,funds,etc. It puts a whole different perspective on what I read.
 

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Nice that banks can be "bailed out" and the average joe schmoe gets foreclosed!

I'd like a bailout and not have to repay!
 

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Maybe someday all this money will actually be used to buy up toxic mortgages/assets like it was originally intended to do.
That was Paulson's plan, Dodd inserted a provision in TARP which allowed recapitalization. Aside from Paulson, most others thought direct capitalization was the much better approach, and I think they turned out correct (and Paulson deserves a lot of credit for adjusting and listening to the criticisms). The banks have been able to repay TARP money despite still having those toxic assets on their books. If the US owned the assets, we'd still be sitting on billions of dollars of worthless assets instead of making billions in interest.
 
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