GMAC Financial Services is likely to be taxed

Article by Christian Andrei, on August 27, 2010

GMAC Financial Services will most likely be asked to pay a fee under a new Obama administration proposal to impose a levy on US banks to recoup bailout money.

General Motors Co. and Chrysler Group are exempted but GMAC will likely be taxed, according to an e-mail from a Treasury Department spokeswoman. 

However, the administration has yet to determine the payment that the banks must make or when the final decision on which institutions to include in its proposal will be made. 

The new tax, if approved by Congress, would demand that banks, which include J.P. Morgan Chase & Co., Citigroup Inc. and Bank of America Corp., have to pay a total of $90 billion over 10 years.

This revenue covers a majority of the estimated $117 billion loss to Treasury's Troubled Asset Relief Program. The TARP was initiated in 2008 by the Bush administration to bail out financial institutions.

GMAC's financial stability is vital to the car industry since it provides floorplan financing to GM and Chrysler dealerships and also finances consumer auto loans.

GMAC got a $16.3 billion investment from the federal government, which now owns 56% of the lender. [via autonews]

Topics: gmac

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries