US Government new majority owner of GMAC

The US Government will now be the new majority owner of GMAC after pumping another $3.8 billion into the struggling company. Let’s hope it works!

From Auto

GMAC Financial Services said today it will get $3.79 billion in additional aid from the U.S. government, on top of the $12.5 billion already received since December 2008.

GMAC, in a statement released late this afternoon, said that with the infusion it achieved the capital levels required by the Federal Reserve to meet the company’s “worse-than-expected economic scenario.”

GMAC said the $3.79 billion cash infusion was less than the $5.6 billion originally expected by the Fed in May 2009 because of lower-than-expected losses related to the General Motors Co. bankruptcy proceedings, which concluded in July.

As part of the latest bailout, the government also increased its equity stake in GMAC from 35.4 percent to about 56.3 percent, the statement said.

Read the full article here.

Photo from fOTOGLIF


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