For the first quarter, net income was $5.6 million, or 10cents a share, compared with a net loss of $678,000, or 1 centa share, a year ago. GMAC's auto finance business will get a boost this month whenit becomes the preferred lender to Chrysler customers as part ofthe Obama administration's agreement with that automaker, which isin bankruptcy. "But if GMAC were tosell businesses, given market conditions, it would not be a goodtime." GMAC, in a statement, said $9.1 billion of the $11.5 billionmust be new Tier-1 capital It did not say how it plans to raisethe needed sums The company declined to elaborate. GMAC is the main source of financing for GM customers, and wasonce a major driver of the automaker's earnings before GM sold amajority stake to private equity firm Cerberus Capital ManagementLP [CBS.UL] and other investors in 2006. Banks may cover any capital shortfalls through a mixture ofasset sales, share sales, and perhaps the conversion of thegovernment's preferred shares into equity stakes.
At year end, GMAC had $6.29 billion of preferred equity,including $5 billion obtained from the government's Troubled AssetRelief Program, and $1.29 billion from other investors. It has three major operations:auto finance, mortgage lending and insurance. "GMAC's first option is to get more money from thegovernment," said Van Conway, the president and a turnaroundexpert at Conway, MacKenzie and Dunleavy in Birmingham, Michigan. "If that fails, it may have to dispose of more profitableunits, and that means insurance," he added. While it could convert preferred shares issued as part of a $6billion federal bailout in December, that would get it only abouthalfway to the target. GMAC became a bank holding company inconnection with that bailout and a debt restructuring. The capital shortfall adds to problems for Detroit-based GMAC,which has lost money in six of the last seven quarters as mortgageand other credit losses soar, while sales volume falls at formerparent General Motors Corp GM.N.
* $11.5 billion capital shortfall Stocks | Regulatory News | Bonds | Global Markets * Fewer options than other lenders By Jonathan Stempel NEW YORK, May 7 (Reuters) - GMAC LLC, the auto and mortgagelender, will likely be forced to seek more taxpayer help in itseffort to raise $11.5 billion of new capital following thegovernment "stress test" of its balance sheet. But unlike the nine other lenders that underwent similar testsand were deemed to require more capital -- only two of which, Bankof America Corp (BAC.N) and Wells Fargo & Co (WFC.N), need morethan GMAC -- GMAC has few obvious ways to raise the sum it needs. making more than just sound waves Fall2009.Source: and http:// for VanScottJamie Letourneau(519) 2009, Market Wire, All rights reserved.-0-. TORONTO, ONTARIO, May 07 (MARKET WIRE) -- The band VanScott is set to release their debut album "Thief of Time" inthe fall of 2009 and from the sounds of things, their tunes will betopping charts everywhere.VanScott is a high energy, hard rock band whose original songs are amelodic and emotional journey taken from the life of VanScott's frontman, Jamie VanScott. Ireland's social welfare lines are ballooning as theeconomy heads into the second straight year of recession. Theestimated unemployment rate rose to 11.4 percent in April andeconomists polled by Reuters expect it to hit 14 percent by theend of the year.
[ID:nL1189945] (Reporting by Carmel Crimmins; Editing by Richard Chang). (Adds confirmation from company) DUBLIN, May 7 (Reuters) - DHL Express (DPWGn.DE) will cut320 jobs in Ireland following a downturn in its domesticdelivery business, the company said on Thursday. "DHL Express can confirm that it announced its intentiontoday to reposition its business in Ireland, in an effort toadjust to the current economic environment," the DeutschePost-owned group said in a statement. - Modesto, California>Full ArticleSOURCEHome Insurance Carrie Van Brunt, +1- 910-452-1000 x 1043, . - Rose Valley, Pennsylvania"I can't believe I saved this much money rewriting two policies! My agent was excellent in providing information and alternativeswhen choosing coverage Thank you so much!" -Joyce S. - Springfield, Missouri"WOW! I received a call literally within one minute of submitting myinformation - we are saving $500 plus per year!" Susan M.
