In 2006 and 2007, Cerberus could not get enough of Chrysler. The New York-based buyout firm first bough GMAC, the finance arm of the automaker, now called Ally Bank, for roughly $7.4 billion. Cerberus then bought an 80% stake in automaker Chrysler from Daimler (DDAIF) in 2007 for an additional $7.4 billion, after German owners could not turn the struggling automaker around.
In 2009, when Chrysler and General Motors went bankrupt and the "Big Three" U.S. automakers dropped to one, Cerberus shed its Chrysler holding to the U.S. government after the automaker was rescued from a messy bankruptcy. It also lost all but 15% of its stake in GMAC after a credit market freeze required multiple billion dollar plus government injections. Cerberus kept its ownership of Chrysler Financial, which it later sold in 2010 to Toronto-Dominion Bank (TD) for $6.3 billion, recoupling a significant piece of its original auto investment.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV