Seven days later: GMAC declares dividends to be paid with taxpayer funds

Let me get this straight:

GMAC, which was owned by private equity gambling firm Cerberus (which is run by former Goldman dudes and even Dan Quayle), used to be the lending and banking and gambling arm of GM. The company was founded in 1919 to help finance cars for buyers of the GM brand.

Over the years, the guys at GMAC got ever greedier and by the time the idiots at Cerberus gambled some $7 billion of their investors’ money on buying GMAC, the company was headlong into wasting its investors’ money on horrible businesses like “wholesale financing” and jumbo mortgages. They also gambled their depositors’ and investors’ and lenders’ money in those toxic mortgage assets like CDOs and so on.

Well, Cerberus and GMAC and GM went to their cronies in the Republican/Democrat Regime in power a couple years ago and begged for billions of dollars in loans and cash infusions because they’d made so many stupid investments and loans over the years that the company couldn’t even pay its utility bills without access to taxpayer largesse.

The company was insolvent. So Bush and his cronies gave the guys at Cerberus/GMAC billions of dollars of welfare. Then when that wasn’t enough, Obama and his cronies gave the guys at Cerberus/GMAC billions of dollars of welfare.

Turns out that wasn’t enough either. So after getting a million dollars for free from the government some 12,000 times already (that’s another way of saying $12 billion), Cerberus and GMAC and its other investors are back with hat in hand begging the Republican/Democrat regime to give them another 5,000 million dollars or so ($5 billion…$5,000,000,000).

It’s outrageous that this company hasn’t been forced into bankruptcy and that we’re ignoring 200 years of rule of law in order to prop up a company that obviously has no idea how to allocate capital and maintain a self-sustaining business.

And you really wanna be outraged? How about the fact that just last week, seven days before they came begging for billions of dollars of more welfare money, the company declared its dividend payouts. Yes, GMAC is asking your representatives to give them your money against your will in a time when we can’t even get health care millions of needy children, so that GMAC can send its owners $44 million next month. (GMAC is also going to pay the Treasury a couple hundred million dollars of taxpayer money…Peter pays Paul, see? Running in circles… but that’s not even the real issue this time!)

Think about that. The government is literally taxing you so that they can give your money to people who were rich enough and powerful enough to risk their own money on GMAC.

How can any liberal be okay with that? And how can any conservative be okay with that?

I'm at war with all Republicans and Democrats in power who have created this horrid system of redistributing wealth upwards to corporations and their owners, lenders and other investors.

I've got a call and an email into GMAC asking them to clarify who exactly got this $44 million dividend windfall totally paid for with your taxpayer money. Holding my breath for their reply. Any bets on whether they actually will tell us?

DETROIT, Oct. 21 /PRNewswire/ -- The GMAC Financial Services board of directors declared quarterly dividend payments on certain outstanding preferred stock. The dividends were declared on Oct. 15, 2009 and are payable on Nov. 16, 2009. The dividend payment declared to holders of GMAC's Fixed Rate Cumulative Perpetual Preferred Stock, Series G, was $17.31 per share, or a total of approximately $44.6 million. This dividend is payable on Nov. 16, 2009 to shareholders of record as of Nov. 2, 2009. This preferred stock was issued to investors in connection with GMAC's private exchange and cash tender offers, which were completed in December 2008.

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