Re: [A-List] Sale will give Cerberus stake in finance units

[CeJ <jannuzi@xxxxxxxxx>]

The stories that I cited and posted to the list include some more information:

A consortium own GMAC, and that includes the original owners, GM,
though Cerberus is supposed to be the dominant partner. GMAC looks to
be in bad loan trouble. I'm not sure about the financial arm at
Chrysler, but it has been reported as profitable. But if it proves
worse in bad loans than GMAC, then look for reluctance to make the two
join up unless enough good debt can be stripped off and securitized in
order to clear enough of the bad debt. I'm sure the 'experts' at
Cerberus have a specific plan in mind and we shall soon see how much
say old owners or surviving management have.

Usually, the more trouble a retail network is in auto sales (i.e.,
Chrysler), the more trouble in bad loans there is a little further
down the road. Perhaps Chrysler Financial is more diversified. Heck,
for all we know, they just helped Cerberus leverage to get Chrysler!

CJ