Friday, January 02, 2009

GMAC and Chrysler

GMAC will be delivering 5 million preferred shares to the government in return for the $5 billion capital injection that they received. GMAC, the financial arm of the automaker also disclosed that the government exercised a warrant to purchase 250,000 additional preferred shares. GMAC also said that if the Treasury doesn’t receive interest on its shares for six straight quarters or more then six nonconsecutive quarters, it will receive two seats on an expanded management board. These board members would only serve until all interest has been paid in full.

Chrysler on the other hand continues to wait for a rescue loan. It is still unclear as to why GM has received their money while Chrysler has not but the Treasury has said that they are “working expeditiously with Chrysler to finalize the transaction. We remain committed to closing it on a timeline that will meet near term funding needs”.

Well lets hope so.

Good Luck and Good Currency Trading.



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