After Dipping Into TARP Funds Now GMAC To Be Taxed For The Automotive Bailout It Wanted To Avoid

GMAC Financial Services is likely to be taxed under a new Obama administration proposal to impose a levy on U.S. banks to recoup bailout money -- even as General Motors Co. and Chrysler Group are being exempted.

“GMAC will likely be subject to the fee,” a Treasury Department spokeswoman said yesterday in an e-mail.

The administration hasn’t decided how much each bank would pay or when it would make a final decision on which institutions to include in its proposal, said the spokeswoman, who asked not to be identified.

If approved by Congress, the new tax would require banks including J.P. Morgan Chase & Co., Citigroup Inc. and Bank of America Corp. to pay a total of $90 billion over 10 years. The revenue would cover most of the expected $117 billion loss to Treasury’s Troubled Asset Relief Program. The Bush administration initiated TARP in 2008 to bail out financial institutions.
Read Article

Bmw8ter - 1/20/2010 6:55:11 PM

+5 Boost

I know it's unreasonable, but I'm of the opinion that any company that took so much as a penny of TARP should have to forfeit all profit until the debt is paid off. Look what's happened: they predatory lended they failed, they were brought back to life, they refuse to lend now, they get 10 years to pay back the loan and now they're cherry picking the most profitable loans on their terms, and they're paying bonuses? WTF!!!

Bmw8ter - 1/21/2010 4:33:51 AM

+1 Boost

Your argument is one of the reasons the GOP lost. All they do is focus on the negative and figure the solution is a Republican, with no real reason why. The U.S. has a multitude of political parties. The Republicans and Democrats being the most well funded. Why don't we replace Obama with a Libertarian. Or a Communist. Or a Socialist. Or a Greenie.

Even Republicans are morons, as evidenced by the previous administration.

truckman - 1/21/2010 1:14:55 PM

0 Boost

In the end all of us pay, the Federal reserve will do it again when they see fit. http://www.youtube.com/watch?v=VebOTc-7shU

truckman - 1/21/2010 7:54:42 PM

0 Boost

RE debooster,You never watched the video, or you are one of the money people. I have no problem with people that are wealthy, as long as they don't step on people to get there.

nguyenvuminh - 1/21/2010 9:32:29 PM

0 Boost

huu is correct in his summary of what GMAC is, a financial institution. Bmw8ter is correct in his summary of those financial institutions activities to date (abuse, benefited, abuse, loss, saved, and continuation of abuse). I don't see a problem with this notion of levying the fee on GMAC. 009, any other practice by this administration that you want to put a negative spin on?