Monday, November 17, 2008

The Wrong Initials

Prospects for a bailout of G.M. in 2008 don't look good, but it appears G.E. already got one. Talking Points Memo reports:
We're all talking about whether GM will get a lifeline from the Feds. But I hadn't heard that GE has already gotten one, albeit not of the same sort GM is looking for. Last week the federal government, or more specifically the FDIC's Temporary Liquidity Guarantee Program agreed to guarantee "as much as $139 billion in long- and short-term debt through next June."

How'd they manage that? Because the company "owns a federal savings bank and a Utah industrial bank whose deposits are insured by the FDIC."

2 comments:

  1. http://www.gmacbank.com/index.html

    does this not count as a bank? GM owns at least 49% of it. I almost changed to this bank a few years ago when it first was started up but got distracted and stayed at the credit union.

    ReplyDelete
  2. I know about GMAC... they are not FDIC insured. My guess is that means they don't get bailout money.

    ReplyDelete

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