Treasury Should Have Let GMAC Go Bankrupt: Report

Law360, New York (March 11, 2010, 4:50 PM EST) -- The U.S. Department of the Treasury's $17.2 billion rescue of General Motors Acceptance Corp. could actually have made the company less viable and more costly to taxpayers, according to a new government watchdog report issued Thursday.

Sending the lender into a bankruptcy restructuring could have been far more beneficial than the bailout as it happened, the Congressional Oversight Panel report said.

“Treasury missed opportunities to increase accountability and better protect taxpayers’ money,” the panel said.

The Office of Management and Budget currently estimates that $6.3 billion...
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