Thursday, March 4, 2010

"unusual cash management arrangements" at GMAC


GMAC commingled cash flows from multiple bonds in a single custodial account, Moody's said in a statement. This allowed GMAC to use cash from loans in one bond for principal and interest payments on another, it said.

...This could give rise to competing claims in a bankruptcy proceeding, the rater said.

Voltron says: yes, we bailed them out.

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