What happens if GM files for bankruptcy?

[blueovalfan]

After hearing about the Big 3 loan bill failing I started thinking about what would happen to all the people with mortgages, auto loans and credit cards through GMAC. Can someone who is knowledgeable in this area please explain what would happen to these loans?

 

[SnkBtn99]

Someone will probably wind up buying them (mortgages, etc) from GM very cheap I would imagine.

 

[Evil Bender]

I think more than likely the GMAC leg will sell off and they will restrucure to get rid of thier legacy cost .

 

[JasonSnake]

I see a new company arising and buying out GM's factories so they could make us new and attractive cars.

 

[goingup]

I think the president will come through and get them the money.

 

[SnkBtn99]

I think the president will come through and get them the money.

Good point. Can't blame anyone other than the outgoing President.

 

[goingup]

Republicans plan:

1. Deny the bailout.
2. Buy cheap GM stocks the next day.
3. Let bailout pass.
4. Sell the stocks with at least a 100% gain.
5. and go on a vacation

 

[Stang Lover]

Republicans plan:

1. Deny the bailout.
2. Buy cheap GM stocks the next day.
3. Let bailout pass.
4. Sell the stocks with at least a 100% gain.
5. and go on a vacation

Yes that could happen but, if they do file for bankruptcy it will give them a chance to start over and correct their past problems so this won't happen again. Only going by what Peter Schiff, Ron Paul, and many others said.


But with the way things are now it will won't happen.

 

[Cruzer]

If they do fail I just hope is dosent affect us.

 

[stangin99]

After hearing about the Big 3 loan bill failing I started thinking about what would happen to all the people with mortgages, auto loans and credit cards through GMAC. Can someone who is knowledgeable in this area please explain what would happen to these loans?

GMAC is just the banking arm of GM.

The same thing will happen to them, that would happen to any normal bank that offers credit. I believe I actually heard them applying to receive money via the $700 billion bailout and apply for bank-holding status.

I'm not sure what the result was.

 

[lawdog302]

Good point. Can't blame anyone other than the outgoing President.

I don't see how the president is responsible for the failing of GM. You know they could of lowered wages, sold off other assets, produced a camaro, or layed off more people. Same with the other 2. I'm not a GM fan, but lets put the blame on who it should go to, not a scapegoat.

 

[juzlookzfazt]

Can't blame anyone other than the outgoing President.

Half the nation says it, but never explain it. Care to elaborate on your call?

 

[crazy1one]

GMAC is just the banking arm of GM.

The same thing will happen to them, that would happen to any normal bank that offers credit. I believe I actually heard them applying to receive money via the $700 billion bailout and apply for bank-holding status.

I'm not sure what the result was.

They weren't able to raise the capital needed to become a bank holding company

 

[rotor_powerd]

GMAC is owned by Cerberus, same people that own Chrysler. If GM goes under, GMAC will still be around.

 

[crazy1one]

GMAC is owned by Cerberus, same people that own Chrysler. If GM goes under, GMAC will still be around.

Funny how Cerberus won't give Chrysler a dime but they expect the US government to bail them out, maybe they realize it's a bad investment.

 

[About2bite]

If they do fail I just hope is dosent affect us.

:lol:oke:

 

[50 Proof]

GMAC is owned by Cerberus, same people that own Chrysler. If GM goes under, GMAC will still be around.

GMAC is partially owned by Cerberus. Cerberus wanted to unload Chrysler onto GM in exchange for an even larger stake in GMAC. I believe there was also cash involved in the deal too in which government funding was not approved so the deal never went through.

 

[Robert Francis]

Cerebus owns about 51% of GMAC. They have tried, unsuccessfully to get GMAC "declared" as a "bank holding company" so that they could acquire "TARP" funding from the government, as other finacial institiutions have.

 

[oldmodman]

It will be reported after market close on a Friday.

"General Motors declares Chapter 7"

All stock is now worth ZERO.

All contracts are void.

There is no more UAW.

All responsibility to previous employees is gone. No more medical expenses, retirement expenses etc.

Monday morning comes the news.

General Motors II is now open for bizz.

We are hiring all new employees at vastly lower rates. No retirement plan, far lower benefit package.

We are a non-union company.

Are wages are in line with Toyota USA, Nissan USA etc.

Take It Or Leave It.

 

[terrible one]

^ as what needs to happen