GMAC Financial Services is likely to be taxed

Article by Christian A., 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]

If you liked the article, share on:

Topics: gmac

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
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