Latest Cerberus Capital Management Stories
U.S. automaker General Motors Corp. said it would offer zero percent financing for several models through Jan. 5 after adjusting an agreement with GMAC. Automotive lending firm GMAC and GM said Friday the agreement would allow GM to offer some car loans through a third-party financing source, The Wall Street Journal reported Friday. Previously, in accordance with a 2006 agreement, whenever GM offered financing at lower than market rates, it had to do so through GMAC, the Journal said. The...
DETROIT, Dec. 30 /PRNewswire/ -- GMAC Financial Services will immediately resume auto financing for a broader spectrum of U.S. customers as a result of expanded access to funding as a bank holding company. The company will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, a significant expansion of credit compared to the 700 minimum score put in place two months ago. GMAC's application to become a bank holding company...
The U.S. Treasury said it purchased $5 billion in preferred GMAC stock and would lend General Motors Corp. $1 billion to invest in the company. GM, struggling to survive a massive sales slump, owns 49 percent of GMAC and relies on the financial company to make loans to auto buyers and dealerships. Cerberus Capital Management, owning 51 percent, agreed to pump $250 million into GMAC, The Washington Post reported Tuesday. The Treasury used money from the Troubled Asset Relief Fund. A Treasury...
NEW YORK, Dec. 29 /PRNewswire/ -- GMAC Financial Services today announced that it has sold $5.0 billion of GMAC's preferred membership interests and warrants to the U.S. Department of the Treasury as a participant in the Troubled Assets Relief Program established under the Emergency Economic Stabilization Act of 2008. The sale was completed today. GMAC also announced that General Motors Corp. (GM) and an affiliate of Cerberus Capital Management contributed to GMAC the $750...
A failure at U.S. lender GMAC could undermine the survival of auto giant General Motors Corp., an industry analyst says. GMAC has not announced the results of a bond-swap it was conducting to reduce its debt, a move critical after the U.S. Federal Reserve granted the firm permission to become a bank Dec. 24, The New York Times reported Monday. The White House has worked out a plan to supply GM with billions in loans to keep the company going, but to approve loans for GM and then let its...
The U.S. Federal Reserve has given permission for automotive financial firm GMAC to become a bank, which will allow it to apply for federal bailout funding. The Fed approved shifting GMAC to a bank holding company Wednesday, The Washington Post reported Thursday. Equity fund Cerberus Capital Management, owners of Chrysler LLC, owns 51 percent of GMAC, while General Motors Corp. owns 49 percent. The two companies, which rely on GMAC's automotive loans, must now sell a bulk of their shares...
NEW YORK, Dec. 24 /PRNewswire/ -- GMAC Financial Services today announced that its application to become a bank holding company under the Bank Holding Company Act of 1956, as amended, has been approved by the Board of Governors of the Federal Reserve System. In addition, GMAC Bank has received approval from the Utah Department of Financial Institutions (UDFI) to convert to a state bank. As a bank holding company, GMAC will have expanded opportunities for funding and access to...
U.S. automaker General Motors Corp. denied reports that it had reopened merger talks with Chrysler LLC, while Chrysler refused to confirm the story. The Wall Street Journal reported Thursday that Chrysler and GM Motors Corp. had reopened merger talks with Chrysler's owner saying it may part with a share of the company, sources said. Both Chrysler and GM are negotiating with White House and Treasury officials to design a bailout plan as slumping sales have pushed both to the brink of...
Chrysler LLC and General Motors Corp. have reopened merger talks with Chrysler's owner saying it may part with a share of the company, sources said. Both Chrysler and GM are negotiating with White House and Treasury officials to design a bailout plan as slumping sales have pushed both to the brink of bankruptcy. Both have announced steep production cuts to adjust to slumping sales. Cerberus Capital Management LP, Chrysler's owner, initiated the discussions with GM, The Wall Street Journal...
Some are questioning whether Chrysler LLC is a viable candidate for a federal bailout, considering its status as a private company. In contrast, General Motors Corp. and Ford Motor Co. are publicly traded companies. Where is the win-win for everyone in this room?, Chrysler's Chief Executive Officer Bob Nardelli was asked recently at an Ernst & Young forum, the Detroit Free Press reported Friday. At that point, Nardelli raised the possibility of Chrysler's owner Cerberus Capital...
