GMAC Says Government Will Own Them for Some Time

It appears as if the government is in for the long haul with its investment in GMAC.

In a filing with the SEC, GMAC said it could take up to 17 years for the government to divest itself of an up to 70% interest in the company.

From Reuters:

In a U.S. Securities and Exchange Commission filing, Detroit-based GMAC said that if it were to go public, the Treasury Department would begin to liquidate its stake no later than seven years after an initial public offering.

It said the government would thereafter have a “goal of liquidating between 10 percent and 20 percent of the Treasury’s interest in GMAC’s equity securities in each succeeding year.”

Anyone want to guess how long we’ll be in GM and Chrysler?

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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