GMAC Only Major Bank That Needs Another Bailout

The other nine banks passed the Federal Reserve's stress test.

How much does GMAC need? Another $6 billion. That's about $70 billion we've put into GM and there appears no way we will ever get that money back. What a disaster. What a sinkhole. What a crumby way to buy auto union votes.

The Obama administration is considering using the $200 billion left in TARP funds to diminish the federal deficit.

Paul Gigot on Fox News this morning said that was a good idea.

The drunken sailor at the White House is coming to his senses.

The Los Angeles Times says:

GMAC is the only major bank that will need additional bailout money after it was unable to raise enough capital on its own, government officials said Monday.

The major provider of auto loans was one of 10 banking firms, including Bank of America Corp. and Wells Fargo & Co., that needed to raise a combined $75 billion by Monday as a cushion to withstand worse-than-expected economic conditions under the Federal Reserve's stress tests of the 19 largest U.S. bank holding companies.

All but GMAC have met the requirement, raising the money by issuing new common stock or securities, converting preferred equity to common equity and selling business units or other assets, the Federal Reserve said.