Monday 16 November 2009 7:00 pm

GMAC chief quits top job

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THE boss of GMAC, the US lender that has so far taken $12.5bn (£7.4bn) in US taxpayer bailout money to survive the economic crisis, quit yesterday.

Alvaro de Molina, chief executive since April 2008, will be replaced by Michael Carpenter, 62, a director of business lender CIT Group, a company that is currently reorganising in bankruptcy.

Molina, who was previously chief financial officer at Bank of America, has been mentioned as a possible candidate to take over as chief executive of the bank.

GMAC has been rocked by falling car and housing markets. Earlier this year, a government stress test found  the company would need to raise $11.5bn of new capital.

Senate Banking Committee Chairman Christopher Dodd said GMAC would receive another $2bn to $5bn of taxpayer money on top of the $12.5bn it has already taken.

But in a statement, GMAC said it has asked Treasury to postpone any decisions about putting more funds into GMAC until Carpenter has had time to assess the strength and prospects of the company.

Carpenter previously held chief executive positions at Citigroup’s Global Corporate & Investment Bank and Salomon Smith Barney.

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