Why are we concerned about saving GMAC? Is this car and home lender really "too big to let fail?" Regulators are considering whether to give taxpayer money to prop up GMAC.
GM owns 49% of GMAC. Privately held Cerberus Capital Management owns the rest. Cerberus also owns Chrysler. Maybe the car makers would be better off without the distraction of running banking operations.
The great fear is that loans to prospective car buyers would dry up without GMAC, and that would kill any hopes of a revival for the U.S. car industry.
Hogwash. There are many credit unions, small banks and large banks that would provide such loans. The U.S. government already provided hundreds of billions of dollars to lenders such as Citigroup and Bank of America for making loans.
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