Posts in "GMAC"

Rachel Kania's picture
By Rachel Kania at 1:36PM
Dec 31, 2009

More Bailouts, More Government Takeover

The government already has a huge stake in our economy, but soon it will be even larger.

The Treasury announced Wednesday that they will be giving GMAC 3.8 billion dollars to help bailout of the company. The Wall Street Journal reports:

The additional aid brings the total U.S. investment in GMAC to $16.3 billion and raises the government's ownership interest to 56% from the current 35%. In exchange for committing more funds, the Treasury will appoint a total of four directors to the company's board instead of two as previously planned. The company will also continue to be subject to pay limits set by U.S. pay czar Kenneth Feinberg. The additional aid is expected to help the firm absorb additional losses associated with mortgages.

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Rachel Kania's picture
By Rachel Kania at 7:24PM
Oct 29, 2009

More Bailouts?

Can you believe it? Geithner is expecting to give GMAC $5.6 billion more dollars!

From detnews.com:

Treasury Secretary Timothy Geithner said the final amount was expected to be less than $5.6 billion.

"We're likely to have to put in less capital than we expected," Geithner said in testimony before the House Financial Services Committee.

As a result of government stress tests, GMAC needs to raise $9.1 billion in new capital by Nov. 9 and received $3.5 billion in May from the government toward meeting that requirement.

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