The Treasury Department said on Wednesday it would give $3.8 billion more to GMAC Financial Services and become the majority owner of the auto lender. This is the third round of government bailouts for GMAC bringing the total amount of taxpayer money given to GMAC to $16.3 billion.

This is happening while other lenders rescued by the Treasury have begun to repay their taxpayer bailouts. GMAC appointed Michael A. Carpenter as chief executive just over a month ago. Carpenter is a former Citigroup executive and current director. Good to know that he has experience running failed companies.

MCV-PAC wonders why the government feels the need to attempt to take over failed businesses with taxpayer money instead of allowing taxpayers to keep their money and letting failed businesses fail.

Until last year GMAC was an auto and home lender, last year it was converted to a bank holding company in order to qualify for bailout financing. GMAC is the only bank of the 19 that were subjected to stress tests that were unable to raise sufficient capital from private investors.

MCV-PAC sees this as yet another example of the Obama administration picking the winners and losers instead of giving everyone equal opportunity and letting the market decide who wins and loses.

Barack Obama needs to realize that he is not a hedge fund manager, his job is not to try and find which companies to use taxpayers money to take over, instead he should be working to protect taxpayers money.

This entry was posted on Thursday, December 31st, 2009 at 3:17 pm and is filed under politics. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.