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AutoBlog: REPORT: GMAC gets another $7.5B from U.S gov't.


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Filed under: Government/Legal, Chrysler, LLC., GM, GMC, Earnings/Financials

gmac_logo.jpgAccording to The Detroit Free Press, the U.S. Treasury has dumped another $7.5 billion into GMAC's coffers just two weeks after the bank was told by federal regulators that it needed billions in order to survive. In another government-backed boost, GMAC is now allowed to issue FDIC-insured debt. Both actions are reportedly designed to help restore faith in the damaged U.S. credit markets.

Founded in 1919, and traditionally a longtime lender to General Motors dealers and customers, the government recently ordered GMAC to extend the same lending offers to Chrysler dealers and their customers. "This new arrangement with GMAC will help provide a reliable source of financing to both auto dealers and customers seeking to buy cars," said Treasury Secretary Timothy Geithner. Approximately $4 billion of the new infusion will support go to support dealer and retail loans for the Chrysler brand, while the remaining $3.5 billion is designed help GMAC address its capital needs in order to survive.

[source: The Detroit Free Press]

REPORT: GMAC gets another $7.5B from U.S gov't. originally appeared on Autoblog on Fri, 22 May 2009 18:27:00 EST. Please see our terms for use of feeds.

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