Thursday, July 24, 2008

FDIC orders Cerberus must provide $3 billion of credit to GMAC

Bloomberg reports: GMAC, Cerberus Pact With FDIC Sets $3 Billion Line
GMAC LLC, the auto and housing lender owned by General Motors Corp. and Cerberus Capital Management LP, must provide $3 billion of credit to its banking unit, according to an agreement with federal banking regulators.

This is good news as the FDIC is sending a message that bank owners are not going to just be able to walk away from their commitments.

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