GMAC Planning Sale Of Government-Backed Bonds

Posted by Orb Staff on June 03, 2009 No Comments
Categories : Residential Mortgage

LC is planning to sell notes guaranteed by the Federal Deposit Insurance Corp. (FDIC), according to reports from [link=http://www.bloomberg.com/apps/news?pid=20601103&sid=a2ndupM6dy44&refer=us][u]Bloomberg[/u][/link] and [link=http://online.wsj.com/article/BT-CO-20090602-712046.html][u]The Wall Street Journal[/u][/link]. Both publications cite a source that has intimate knowledge of the deal's details. GMAC, which was approved as a bank-holding company last [link=http://www.mortgageorb.com/e107_plugins/content/content.php?content.2753][u]December[/u][/link], announced late last month that it had received a $7.5 billion capital investment from the Treasury, as well as [link=http://media.gmacfs.com/index.php?s=43&item=331][u]approval[/u][/link] by the FDIC to participate in the agency's Temporary Liquidity Guarantee Program. ‘These actions represent another major step in stabilizing and strengthening GMAC,’ GMAC CEO Alvaro G. de Molina said at the time. The FDIC program gives GMAC "access to a very low cost of capital that they otherwise would not be able to tap because of their low ratings," Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. told Bloomberg. The bonds GMAC is looking to sell will mature in December 2012, according to the reports. SOURCES: GMAC, WSJ, Bl

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