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2008 Deja Vu: GMAC Confirms SEC Probe Of Subprime Loans, Will "Investigate Itself"
While not entirely surprising, the fact that GM Financial has admitted that:
- *GM FINANCIAL: SEC PROBING SUB-PRIME LOAN SECURITIZATION
Of course, we should not worry about this... we are sure it is "contained" as GM reports it is "investigating matters internally" - just like it did with the ignition switch year ago?
Via GM's 10K,
In July 2014, we were served with a subpoena by the U.S. Department of Justice directing us to produce certain documents relating to our and our subsidiaries’ and affiliates’ origination and securitization of sub-prime automobile loans since 2007 in connection with an investigation by the U.S. Department of Justice in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
Among other matters, the subpoena requests information relating to the underwriting criteria used to originate these automobile loans and the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile loans. We were subsequently served with additional investigative subpoenas to produce documents from state attorneys general and other governmental offices relating to our sub-prime auto finance business and securitization of sub-prime auto loans.
In October 2014, we received a document request from the Securities and Exchange Commission in connection with its investigation into certain practices in sub-prime auto loan securitization. We are investigating these matters internally and believe that we are cooperating with all requests. Such investigations could in the future result in the imposition of damages, fines or civil or criminal claims and/or penalties. No assurance can be given that the ultimate outcome of the investigations or any resulting proceedings would not materially and adversely affect us or any of our subsidiaries and affiliates.
Nothing to see here, move along... the rebirth of the subprime lending bubble...
and the delinquencies are alreasy surging...
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With cars costing as much as homes a few years ago, this should be good.
note to Tylers GMF <> GMAC = Ally Financial
Interesting happenings at Ally, per WSJ:
Ally Financial Gets Subpoena Related to Subprime Automotive Finance
Ally Lashes Back at GM After Jilting
Ally Financial CEO Michael Carpenter Steps DownI like this. I always thought the arguement for MBS was that the underlying asset will (theoretically) hold it's value. Cars lose 40% of their value as soon as you drive off the forecourt. Houses do appriciate in value cars never do in the short term. EVER.
Never heard that one...abs/mbs is all about liquidity and the illusion that 'risk' disappears when transferred OBS.
I feel much better that they'll be policing themselves.
https://www.youtube.com/watch?v=M1owcncKCHg
But should the government investigate Government Motors instead? Wouldn't that make us feel much better?
Maybe today's news of investigation is related to yesterday's news that the CEO was stepping down unexpectedly, after 18 years...
Naaaahhhhh - just coincidence
NoVa
Like the Fed auditing Ft. Knox. LMFAO
Doesn't matter, "it's contained"
i will never buy vehicle made by this shit bailed out company...
even though the newest CTS V sedan looks fat..
May as well have a bad loan for a bad vehicle.
GM is a moron hazard vortex
And a moral hazard vortex.
My neighbor loves his CTS and he is really into cars. He said the base model was under $30k with a 2.0 Liter engine. I now have over 315k on my Honda Accord and my mechanic says my next car should be top end (used) Japanese as MBZ and BMW are expensive to maintain. BTW, who is designing the new GM SUVs, they look like spuds with wheels?
Ha. 266,000 on my Honda CR-V. Going for 400,000 if I live long enough.
I drive a turbo 92 civic hatch. Motor has 200k on it. I drive it like i stole it every day not a problem yet. I love killing vettes to see the looks on their faces. Its a real sleeper
hahahha. I got 29 mpg on my last tank, mostly freeway in 5th gear, and I think that is with ethynol-spiked regular gasoline in Cali. Timing belt every 100k, clutch every 120k and plugs every whatever. My mechanic said the plugs he just replaced were burning clean. I tell you one thing about the Accord, someone knows how to design seats. The seats are still comfortable and obviously I drive alot. My 1986 Toyota Cressida was the best car. Got 356k on it and the trannie went, although I put a used Japanese engine in at 260k. Why people deal with GM and all the recalls and issues with the vehicles is beyond me.
I just passed smog. I could see the techs standing around my road warrior wondering at the fact that it passed first try. Fuck GM.
Used skyline, call it a day.
There is no intelligent design at GM. I think they rely on evolution or something.
just look up 'design by committee' or 'Aztec' and that explains it all.
And people think (some people actually think) that Acura's look like they were designed on an acid trip. At least that's what Adam Corollo stated on his short-lived The Car Show.
The Aztek must have been designed on a bad acid trip--oh, wow, man, let's add a tent for camping.
General Moaners
Not that any of this makes a difference. S&P going vertical again.
I'm thinking of buying a Honda Pilot. I've had enough GM crap. Problem is that when I check out the deals on their website it's all about cheap financing and leasing. Can't get a break if you just want to purchase.
So take their free money and put the rest of what you have into gold and silver. Then when the dollar goes to shit in the cming years, you can pay off the car with just a couple of ounces and keep the rest all for yourself...plus have a Honda Pilot.
I didn't do this. I drive a 2005 Civic that cost me less than $3000 earlier this year. Had to replace the alternator, and all has been good since. This thing only has 160k miles on it, so I've got another ten or fifteen years on it.
So, free advice is likely worth what you paid for it...
Go for the quality product. Sum's advice is sound. I did get a deal on a 2012 Ridgeline, but had to haggle with the dealer. Got good financing, and paid it off early.
I bought my last used car for cash at a dealer in a neighboring state. They didn't know how to fucking act, and I still had to sit in the showroom for hours while they figured it all out.
2007 Honda Pilot 4WD is the best material possession of my life. LOVE that automobile. Next new car purchase (200k miles from now) seems like it will be a Honda. Sure as shit won't be GM. I would strongly consider a Ford.
Yeah, after getting burned by the union/obama orchestrated bailout, looking at Ford.
Any Dealer will take cash and love it, especially at month-end. If they have not hit their 'number' for the month they will deal. They floor plan all those autos sitting on their lot, each month rolls over another payment plus interest.
An investigation? SHOCKING!
I'm sure they'll put their past man on it. Remember...BAILOUTS DO NOT FAIL!
Carry on....
I think that for the sake of appearance, they'll end up bringing in an outsider to oversee the investigation. I understand that Captain Renault is available now that he has completed his investigation of reported gambling at Rick's American Cafe.
this must be the reason why - once again - the Dow was pumped higher in the last hour of trading in London....
Wait till the recently formed CFPB juggernaut gets ahold of auto finance...
http://www.cfpbmonitor.com/tag/auto-finance/
As a "limited liability person" I will be henceforth using the very same accounting standards, regulation, and "self-policing" as well...
fuck em.
Is "investigating yourself" a new term kids are using for masturbation? Guess I'll go to Urban Dictionary and see what they say...
You beat me to it. 'Investigating yourself' leads to blindness, hairy palms or a dull mind. I was told.
+1 for "I was told"
Be careful investigating yourself. You could go blind.
Throw in a case of hairy palms, too.
I personally know of two people who have lost new cars they never should've had in the first place.
This should mean something, but who really gives a shit. GM,GMAC,ALLY can fuck up all they want and screw as many as possible.
No problem, if and when they run into trouble, then the USSA taxpayer will take it in the ass. Business as usual! MF'ers!
Wouldn't it be funny if the government had to pay interest from the people when it wanted money to spend.. Oh wait.. I see a problem here. they already tried that..
here's some more happy horseshit:
http://www.detroitnews.com/story/business/autos/general-motors/2015/02/0...
over a quarter of the loans they made in 2013 were garbage. can't wait to see what 2014 and 2015 bring, especially with the oil bust well underway. the fraud always comes out in the end.
So the bonds will go ka-boomy???
What's the big woop? Doesn't the Fed all of them anyway?...or will shortly???
Gotta move these large trucks and suvs before oil spikes again.
Channel stuffing only works so long.....
I bet Ms. Channel is getting pretty sore at this point....
I love it when I get to investigate myself.
I always come out smelling like a rose!
TARP=II the movie. coming to a theatre near you!!!!
from 1999 to 2014 bought 3 different GM models, all 3 within 12-18 months seat heater went out. You'd think in 15 years they could either not offer something substandard or learn how to make it right. Not with those idiots. I'm done with GM.
BMW has the same seat heater issue. My ex-boss (I'm retired now), had a Five Series and literally burned his ass, and put a hole in his suit when the heater went into overdrive. Aside from the peanut gallery snickering, he did not enjoy his day. Only cost him $4K to fix. He dumped it and bought an Audi A4.
Of course they will.
Here's a little nifty article on how cocaine stubbs the dopamine that is the rewards and learning center of the brain. So whatever these junkies are doing up there on Wall Street, they show no remorse: well they're too stupid to know anything but corruption in the first place. Add dead brain cells and you can even make coke addiction a nice alibi. http://www.latimes.com/science/sciencenow/la-sci-sn-cocaine-addicts-deci...
A trillion of USD left the country and went to south and central america, this is too possible.
Hugs Not Drugs!
The combined brain power of the SEC and DOJ couldn't power a 220 bulb for 5 minutes.
They each have the integrity of street prostitutes.
Mild compared to the reality.