Thursday December 11, 04:26 PM
STOCKS NEWS US-Firm: if GMAC fails, bailout won't help GM
Stocks on the move Real (Frankfurt: BJU.F - news) -Time Equity news
U.S. stock market report
1102 ET 11Dec2008-Firm:
if GMAC (NYSE: GOM - news) fails, bailout won't help GM ------------------------------------------------------------------------------
DA Davidson Thursday said that it was just as concerned with the fate of GMAC and its impact on the auto industry as it was about the immediate-term viability of the major auto makers. On Wednesday, GMAC, an auto and mortgage lender owned in part by General Motors (NYSE: GM - news) , said it failed to meet the capital requirements to become a commercial bank holding company.
'GMAC's announcement made yesterday... strongly hinted at a near-term bankruptcy if they are not able to restructure debt and raise more equity capital by December 31,' the firm wrote. 'Failure of GMAC immediately threatens the viability of General Motors regardless of what is decided in Washington in terms of the short-term rescue plan.'
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