Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

The silver lining for Cerberus

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Topic Forums » Economy Donate to DU
 
Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 12:15 PM
Original message
The silver lining for Cerberus


The failure of Chrysler is a big deal, but it leaves the private equity firm with a finance arm to blend with and strengthen its GMAC operation.

NEW YORK (Fortune) -- As Chrysler heads to bankruptcy court today in New York City, it becomes the highest profile failure for the private equity industry and its former owner Cerberus. But there is a slender silver lining for the New York money men.

As part of the automaker's decision to file for Chapter 11 bankruptcy protection, Cerberus will retain the assets of Chrysler Financial, the auto financing arm. It will work through the existing portfolio, which will hopefully generate a modest income stream as the loans come to maturity.

More importantly for Cerberus and its investors, Chrysler Financial's future business will be folded into GMAC, the auto finance company that the private equity firm bought from GM in 2006.

"GMAC and Chrysler Financial are effectively being merged," says David Whiston, an analyst who covers GM for Morningstar. "This could be a very profitable endeavor for Cerberus if they continue to have a stake in GMAC."

http://money.cnn.com/2009/05/01/news/companies/cerberus...

Printer Friendly | Permalink |  | Top
msongs Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 12:31 PM
Response to Original message
1. Cerberus = suck the last drop of blood from a corpse before discarding nt
Printer Friendly | Permalink |  | Top
 
excess_3 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-05-09 07:41 PM
Response to Reply #1
4. a going concern dosn't have to do business withh blood suckers
Edited on Tue May-05-09 07:43 PM by excess_3
Chrysler should have been let to die a long time ago


BTW, Chrysler could ne purchased by the UAW for about a buck
if they wanted it.
Printer Friendly | Permalink |  | Top
 
metapunditedgy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 12:52 PM
Response to Original message
2. Cerebrus == fund run by GOP castoffs looking to turn political connections into $$.
http://en.wikipedia.org/wiki/Cerberus_Capital_Managemen...

Let's keep an eye on these guys.

Interesting that Cerberus is now getting Chrysler Financial. A few days ago, CNN reported the gov't said Cerberus would get "nothing."
Printer Friendly | Permalink |  | Top
 
customerserviceguy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 05:41 PM
Response to Original message
3. For them, it must seem
a little like watching your Mercedes roll down a hill, and just before it plunges off a cliff, it hits a tree that knocks the hood ornament off, for you to add to your bling collection around your neck.

It does reflect the fact that one can make more money lending money, than from making automobiles these days.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Nov 27th 2014, 01:56 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Topic Forums » Economy Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC