GMAC revealed Thursday that it would not inherit Chrysler Financial's book of auto loans and leases. It is taking over being the lender for new financing to Chrysler dealers and consumers, according to a report from Dow Jones
The report said this could be a win-win situation for GMAC, which got a bank holding company charter in December to have the required funding to survive. The pact with Chrysler would imply thta GMAC will not be saddled with problems that could arise in Chrysler Financial's portfolio because of Chrysler's filing for bankruptcy.
Being the new lender for Chrysler dealers and consumers will help GMAC satisfy its requirement as a bank holding company to diversify its lending business away from General Motors Corp.
President Obama said Thursday Chrysler would file for protection from creditors under Chapter 11 of the federal Bankruptcy Code.