GMAC http://michiganradio.org en GM rebuilds its finance arm with Ally purchase http://michiganradio.org/post/gm-rebuilds-its-finance-arm-ally-purchase <p>General Motors was a deeply troubled company in 2008.</p><p>Eh.&nbsp; Make that deeply, deeply, deeply troubled.</p><p>So was its finance arm, GMAC, which had plunged head-first into subprime mortgage lending, in addition to automotive lending.&nbsp; That left the company awash in billions of dollars worth of&nbsp;bad mortgages.</p><p>The federal government had to figure out a way to bail out both companies&nbsp;- because GM wouldn't&nbsp;survive if it didn't have a place to send customers&nbsp;for car loans, and if its dealers didn't have a place to get financing to buy the inventory.</p> Thu, 22 Nov 2012 21:55:41 +0000 Tracy Samilton 10037 at http://michiganradio.org Ally Bank to sell some assets, place another in bankruptcy, to pay off taxpayers http://michiganradio.org/post/ally-bank-sell-some-assets-place-another-bankruptcy-pay-taxpayers <p align="LEFT">Detroit&#39;s&nbsp;Ally Bank, formerly known as&nbsp;GMAC, says it will sell off foreign subsidiaries and put its mortgage division into bankruptcy, in an attempt to pay back its government bailout.</p><p align="LEFT">The U.S. Treasury gave more than $17&nbsp;billion&nbsp;to GMAC when it bailed out GM.</p><p align="LEFT">The money was meant to prevent the collapse of loan availability for GM vehicles and GM dealers.</p><p align="LEFT">So far, GMAC, now Ally Bank, has paid back&nbsp;$&nbsp;5.5&nbsp;billion.&nbsp;&nbsp;&nbsp;</p><p align="LEFT">But it was unclear how the company would pay back the rest. Its mortgage arm loses money every quarter on subprime mortgage loans made before the bank crisis of 2008.</p><p align="LEFT">Now Ally says it will put its mortgage division into bankruptcy, and sell off foreign subsidiaries.&nbsp;&nbsp; The company says that will allow it to repay a total of 2/3 of what it owes the Treasury before the end of the year, leaving a balance of about $6&nbsp;billion.<span style="display: none;">&nbsp;</span></p><p align="LEFT">Ally officials say they will provide&nbsp;bankruptcy financing for the&nbsp;mortgage arm, known as Res Cap, and strike a&nbsp;financial&nbsp;deal with&nbsp;the company&#39;s creditors, so that Ally can come out of the&nbsp;mortgage division&#39;s&nbsp;bankruptcy&nbsp;with no additional liabilities. Mon, 14 May 2012 21:46:35 +0000 Tracy Samilton 7468 at http://michiganradio.org Bridgewater Place in Grand Rapids sold at foreclosure auction http://michiganradio.org/post/bridgewater-place-grand-rapids-sold-foreclosure-auction <p>One of the biggest office buildings in Grand Rapids sold for $34 million at a public foreclosure auction today. The 17-story blue-glass Bridgewater Place building dramatically changed the city’s skyline when it was built in the early 1990s.</p><p>Many people refer to the building as the Varnum building, because of the law firms’ prominent logo near the top floor.</p> Wed, 26 Jan 2011 17:03:53 +0000 Lindsey Smith 1016 at http://michiganradio.org Bridgewater Place in Grand Rapids sold at foreclosure auction