Business Bankruptcies
General Motors is still fighting strong to be a viable auto industry presence. The question is will they have to go through the full bankruptcy process to be able to accomplish the re-structuring required. Many financial experts doubt they can avoid filing for Chapter 11 bankruptcy protection. On Friday, May 22, 2009 GM borrowed another $4 billion from the U.S. Treasury Department. GM filed the required information with the Treasury Department on how the funds were going to be used and the plan was accepted but none of the details have been made public. During the last week, GM achieved vast cost reducing deals with U.S and Canadian unions which now have to go to the workers. If they are ratified the company called GM could survive another round. GM officials say they will need another infusion shortly after June 1st of approximately $7.6 million. In addition to handing money to General Motors directly the government has been supporting GMAC to the tune of $12.5 billion and is setting aside money to cover GM's warranties. It is hard to keep the separation of business and government in this economic situation but President Obama repeats the government does not want to be in the car business. GM is required to complete the restructure plan by June 1st.
Foreclosure News
Similar to the auto fairs banks and credit unions host to sell off repossessed motorized vehicles some banks across the nation are organizing events where they invite their current bank account holders to come and look at what the bank has available in real estate that they have foreclosed on. The process is a little more ive then an “open auction” as the people invited are hand chosen to attend. Financing is provided by the bank and moves quickly as the people are pre-screened as they are already bank or credit union members.
The tremendous backlog of foreclosed properties is the motivating factor behind financial institutions trying new and creative marketing tactics. The huge inventory of unsold homes and foreclosures has to be cleared out before prices will stabilize in the housing industry and investors’ attitudes improve. The government is like an anxious gardener watching for any little sprout of green as confirmation that the stimulus seeds planted are taking root and growing. Investors are less optimistic and are not fooled by the lower number of foreclosures. They are very aware that the labor market is not any better and the decrease in foreclosures of 40% in some areas is more a matter of public policy than anything else.
New Business Financial Services Law Proposed
The Rating Accountability and Transparency Enhancement Act of 2009, a new bill introduced to the Senate on May 19th, is aimed at reforming the credit rating industry. The bill would legally make agencies accountable for the ratings they assign. Part of the bill allows investors to take legal action against companies that do not take steps required to craft a good credit rating. The bill would also give the U.S. Securities and Exchange Commission more power over credit rating agencies. Senator Jack Reed, chairman of the Senate Securities, Insurance and Investment Subcommittee, sponsored the bill.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
If you have any questions or comments regarding this article
please contact Coastal News Contributor at news@coastalcreditsolutions.com |
Getting Started 
