mchlfnd wrote:If GM goes bankrupt, will it affect GMAC Bank's solvency?
This is something I have not been able to get to the bottom of.
If you are investing with GMAC, stay within FDIC limits. I wouldn't own their bonds.
Do the personal financial situations of any of the shareholders of CitiBank or BoA have anything to do with those bank's solvency, absolutely not.
GM has less than 50% ownership stake in GMAC. They are just like any other owner of a banks shares. They may be forced to sell their remaining interest in GMAC in any bankruptcy.
That said I still wouldn't have any assets in excessive of FDIC limits in GMAC Bank. The bank itself has its own problems. It has received bailout money from the Treasury.
I have deposits at GMAC Bank. They are below FDIC limits, I'm not moving them.
...GMAC bank customers do not have to worry about the hassle of the parent company defaulting. While the parent company was not a bank holding company, GMAC bank was and still is a bank and deposits were fully covered by FDIC insurance. The change in status of the parent company means extra stability for the bank and its depositors.
andrewj wrote:Any updated thoughts on how people feel about this, given more recent concerns about GM's viability? Suppose GM does file for bankruptcy and/or gets liquidated, would that affect what goes on at GMAC? And what about this holding company business (not sure if I completely understand what that means). Just wondering, before I decide to open a CD there.
Stay within FDIC!
Don't assume that you will get bailed out if more than FDIC exposure.
Don't assume that it is safe.
Note GMAC is owned by the same PE firm that owns Chrysler (Cerebrus) and boy are they suffering.
Who is online
Users browsing this forum: Amoryb, aristotelian, bigred77, Bing [Bot], Bobo, Bogle_Dude, btenny, Casablanca, dbltrbl, delamer, enki, Flymore, frankyo, Google [Bot], granpa, jasc15, maniminto, motovirus96, mrc, NotWhoYouThink, oldhobo, RAchip, selters, tanstaafl, Toons, TropikThunder, ved and 121 guests