Driving Sports

Reuters reports that the Bush Administration has bought some equity (they don't say how much) in GMAC
for $5 billion - that's on top of the $13.4 billion they gave GM and Chrysler last week. GM
owns 49% of GMAC and Cerberus (Chrysler) owns 51%. They also tossed another $1 billion to GM this week, just because. Cerberus purchased 51% of GMAC for $7.4 billion in 2006, when sub-prime mortgages were making GMAC look profitable. But wait - there are STRICT restrictions that go along with that money. According to Reuters, the bonus pool for the top 25 executives at GMAC was reduced by 40% from 2007 levels. Of course, neither GMAC nor the government mentioned what the size of the bonus pool was in 2007. Doesn't that make you feel better?