Unique treatment of GMAC under TARP / Robert W. Crowley, editor.

Format:

Book

Contributor:

Crowley, Robert W.

Series:

Financial institutions and services.

Financial institutions and services

Language:

English

Subjects (All):

GMAC (Firm).

Troubled Asset Relief Program (U.S.).

Bank holding companies--United States.

Bank holding companies.

Bank failures--Government policy--United States.

Bank failures.

Banks and banking--State supervision--United States.

Banks and banking.

Financial institutions--United States--Finance.

Financial institutions.

Physical Description:

1 online resource (188 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

GMAC is a diversified financial services firm that derives its revenues from automotive finance, where it holds a dominant position, as well as mortgage operations, insurance operations, and commercial finance. This book examines the treatment given GMAC under the TARP.

Contents:

Intro

UNIQUE TREATMENT OF GMAC UNDER TARP

CONTENTS

PREFACE

Chapter 1 MARCH OVERSIGHT REPORT: THE UNIQUE TREATMENT OF GMAC UNDER THE TARP

GMAC EXECUTIVE SUMMARY*

SECTION ONE: GMAC

A. Overview

B. Automotive Industry Financing

C. GMAC's Business, its Structure, and Why it was Failing

1. Company Overview and Recent History

2. BHC Application and Approval

a. Rationale for Application

b. BHC Approval

c. GMAC's Section 23(a) Exemption

d. Impact of BHC Approval

3. GMAC's Relationship with GM

a. Captive Era

b. Post-captive Era

c. Other Issues Raised by GM/GMAC Relationship

4. Global Automotive Finance

5. Mortgage Operations

D. History/Timeline of Various Stages of Investment

1. GMAC before December 24, 2008

2. Timeline of TARP Investments: December 2008-December 2009

a. December 2008 Investment

b. May 2009 Investment

c. December 2009 Investment

3. Government Support from Programs Other Than the TARP

a. The FDIC's Temporary Liquidity Guarantee Program

b. The Federal Reserve's Discount Window and Term Auction Facility

c.The Federal Reserve's Term Asset-Backed Securities Loan Facility

d. The Federal Reserve's Commercial Paper Funding Facility

4. Impact of the TARP on Executive Compensation

E. Justification for the Rescue of GMAC

1. GMAC's Significance to the Financing of the Automotive Industry

a. Automobile Companies' Reliance on GMAC

b. Could Financing Have Been Provided by Other Market Participants?

2. Commitments Made by Treasury

3. Systemic Importance of GMAC: Could it Just be Permitted to Fail?

4. Treasury's Explanations for why Bankruptcy Law Could Not be Used and Why ResCap Could Not be Abandoned in a Restructuring

F. GMAC and the Stress Tests.

G. GMAC and the AIFP: A More Lenient Approach

1. Due Diligence and Demonstrations of Viability

2. Consequences to Shareholders

3. Bankruptcy

H. Exit Strategy and Expected Returns from the GMAC Investment

1. Treasury's Options for Divesting the GMAC Stake

2. GMAC's Current Strategy

3. The Forthcoming Business Plan

4. Treasury's Approach to Managing its Shareholder Interests

5. Evaluating the Investment: Current and Required Value

I. Conclusion and Recommendations

SECTION TWO: ADDITIONAL VIEWS

A. J. Mark McWatters and Paul S. Atkins

SECTION THREE: CORRESPONDENCE WITH TREASURY UPDATE

SECTION FOUR: TARP UPDATES SINCE LAST REPORT

A. TARP Repayments

B. CPP Warrant Dispositions

C. CPP Monthly Lending Report

D. Term Asset-Backed Securities Loan Facility

E. Help for Hardest Hit Housing Markets

F. Metrics

G. Financial Update

1. The TARP

a. Costs: Expenditures and Commitments

b. Income: Dividends, Interest Payments, CPP Repayments, and Warrant Sales

c. TARP Accounting

d. Rate of Return

e. TARP Warrant Disposition

2. Other Financial Stability Efforts

Federal Reserve, FDIC, and Other Programs

3. Total Financial Stability Resources (as of December 31, 2009)

SECTION FIVE: OVERSIGHT ACTIVITIES

Upcoming Reports and Hearings

SECTION SIX: ABOUT THE CONGRESSIONAL OVERSIGHT PANEL

ACKNOWLEDGMENTS

APPENDIX I: LETTER FROM SECRETARY TIMOTHY GEITHNER TO CHAIR ELIZABETH WARREN, RE: RESPONSE TO QUESTIONS ON EXECUTIVE COMPENSATION, DATED FEBRUARY 16, 2010

WRITTEN RESPONSES TO LETTER FROM CHAIR WARREN DATED DECEMBER 24,2009

End Notes

Chapter 2 OPENING STATEMENT OF ELIZABETH WARREN, CHAIR OF THE CONGRESSIONAL OVERSIGHT PANEL - CONGRESSIONAL OVERSIGHT PANEL HEARING ON GMAC FINANCIAL SERVICES.

Chapter 3 OPENING STATEMENT OF RICHARD NEIMAN - CONGRESSIONAL OVERSIGHT PANEL HEARING ON GMAC FINANCIAL SERVICES

Chapter 4 WRITTEN TESTIMONY OF RON BLOOM, SENIOR ADVISOR TO THE SECRETARY OF THE TREASURY, AND JIM MILLSTEIN, CHIEF RESTRUCTURING OFFICE, U.S. DEPT. OF THE TREASURY, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL

BACKGROUND ON AUTO INDUSTRY INVESTMENTS

BACKGROUND ON AUTO FINANCE MARKET

GMAC

Chrysler Financial

Additional Auto Finance Programs

Conclusion

Chapter 5 WRITTEN STATEMENT OF MICHAEL A. CARPENTER, GMAC CHIEF EXECUTIVE OFFICER, GMAC FINANCIAL SERVICES, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL

INTRODUCTION

GMAC'S STRATEGIC DIRECTION

REPAYMENT OF THE TARP INVESTMENT

STATE OF THE AUTOMOTIVE FINANCING SECTOR

Chapter 6 WRITTEN STATEMENT OF ROBERT S. HULL, GMAC CHIEF FINANCIAL OFFICER, GMAC FINANCIAL SERVICES, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL

IMPACT OF TARP ASSISTANCE:

SUPPORTING THE AUTOMOTIVE SECTOR

CAPITAL RESTRUCTURING AND STRATEGIC INITIATIVES

Chapter 7 STATEMENT BY CHRISTOPHER WHALEN, CONGRESSIONAL OVERSIGHT PANEL - HEARING ON GMAC TARP ASSISTANCE

IRA Bank Stress Index Rating - Ally Bank - Q4 2009

Auto Industry Financing

The Manner of Treasury's Involvement

The Outlook for GMAC

CHRISTOPHER WHALEN

Managing Director Institutional Risk Analytics

APPENDIX A

CHAPTER SOURCES

INDEX

Blank Page.

Notes:

Includes index.

Description based on print version record and CIP data provided by publisher.

ISBN:

1-61728-628-1

OCLC:

711000601