Alley: At one time GMAC made more money for GM financing new cars and leased cars than GM made making autos. But as GM sank toward bankruptcy, GMAC risked its credit rating which made its interest rates rise and eat into profits. So GM sold off controlling interest to a financial entity. I'm thinking it was Cerberus, the same one that bought Chrysler.During the financial meltdown after Lehman's, Alley got FDIC insurance, but Alley got in trouble for its mortgage portfolio. The auto financing part was OK as the cars were real assets (but a crash in blue book value from going out of business might have meant a write off).Recently Alley has taken its home mortgage unit into bankruptcy but the bank is still FDIC insured and doing OK.They did manage to sidestep the GM bankruptcy. GMAC was one of GMs most valuable assets.
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