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Feds may inject $7.5 billion more into GMAC

Posted Wednesday, May 20, 2009, 11:33 am in Employee News

The Treasury Department is preparing to announce as early as today that it will invest an additional $7.5 billion in GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company, The Detroit News reported.

GMAC, whose financial good health is key to providing loans for consumers to buy General Motors Corp. and Chrysler LLC vehicles, has been in talks for several weeks to secure additional capital, the News said. The company had hoped to close the deal last week, the story said

In December, the U.S. Treasury invested $5 billion in GMAC by buying preferred stock in the finance company, the paper said. That stock carries a 9 percent dividend, but has no voting rights. Treasury also loaned GM nearly $900 million to buy GMAC stock, the story said. (The Detroit News)
 
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