The CEO of GMAC Financial Services (a joint-venture of the United States government) has been forced to resign on the eve of the company's third recourse to taxpayer money.
Alvaro de Molina resigned at the request of GMAC Financial's board of directors due to "mounting concerns in recent weeks about his leadership and his vision for the company," The Wall Street Journal reports. It also notes that de Molina totally did not see it coming. The mutiny came at noon today.
Despite running the company for more than a year and a half, de Molina wasn't exactly best friends with anyone on the board: It got an extreme makeover in May after GMAC Financial got a second round of federal money. Two of the company's directors are Treasury appointees; he apparently had even lost the support of the guy who got him the job, Cerberus Capital Management chief Stephen Feinberg, whose private equity firm continues to own 22% of GMAC Financial. Feinberg was apparently none too pleased when de Molina moved to make the lender a bank-holding company, which resulted in a serious diminution of Cerberus' control over GMAC Financial.
The departure of de Molina also means a delay in GMAC Financial's third government bailout. While the company has requested up to $5.6 billion in new capital--it's already gotten $12.5 billion--new CEO Michael Carpenter, the former Citigroup banker, has asked the Treasury to cool it for a bit while he checks out GMAC Financial's finances.
As for its old CEO, might we suggest a comfortable landing in lovely Charlotte, N.C.? De Molina is a Ken Lewis protégé who served as CFO of Bank of America before leaving the firm in 2006. Now, his popularity with the company's investors and employees may have been tarred by the fact that he's lured 130 of the latter away from BofA over the last three years. But otherwise, he's the perfect candidate: He's an insider, he's an outsider, he's a Ken Lewis guy, he has experience working with boards of directors that don't like him and he knows how to spend billions of Tim Geithner's dollars.
Oh yea, and he's unemployed and might actually take a job that literally no one else wants.
Let's hear it: Give Al de Molina the Worst Job on Wall Street.
GMAC Chief Resigns [WSJ]