GMAC asks for 3rd bailout
Lender to GM and Chrysler dealers
Last Updated: Wednesday, October 28, 2009 | 12:05 PM ET
CBC News
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American lender GMAC is asking for a third injection of taxpayer cash from the U.S. government, a Treasury Department spokesperson confirmed Wednesday.
GMAC is the former lending arm of General Motors and remains an important provider of financing for GM and Chrysler dealers to pay for vehicles for their lots. It's also a significant player in the U.S. residential mortgage market.
GMAC lends to GM and Chrysler dealers so they can buy cars for their lots.
(Canadian Press) It has received two packages of bailout money totaling $12.5 billion already, and the government holds 35 per cent ownership. While other banks have been able to raise capital from private investors, GMAC has been forced to go back to the government.
If the cash were approved, GMAC would be the only company to receive three bailouts. The move would also represent a further entrenchment for the U.S. government into the auto industry.
The government also owns a majority-stake in GM and a smaller stake in Chrysler. The Treasury spokesperson declined to comment on whether the government's ownership stakes in the two automakers make it more willing to again help GMAC.
With files from the Associated PressShare Tools
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