GMAC in line for $7.5B in government loansby Drew Johnson
The federal government has already given GMAC - the lending arm of General Motors and Chrysler - more than $5 billion in emergency loans, and it looks as though the troubled lender is in line for more bailout cash. GMAC could receive as much as $7.5 billion from the federal government this week.
According to Reuters, the funds will come from President Obam's package deal to shore up the nation's financial institutions. The federal government ordered GMAC just last week to secure more than $13 billion in new capital.
"It's likely, again, that GMAC will need to take additional capital from the government and we'll be prepared to provide that," U.S. Treasury Secretary Timothy Geithner told Reuters.
The United States government has already given GMAC $5 billion in direct loans, with another $884 million filtering in through loans given to General Motors. GMAC recently displaced Chrysler Financial as the lending arm of Chrysler which alone will require an additional $4 billion.