US to Hand Ailing GMAC Another $3.5B
Firm has already taken some $12.5B
By Matt Cantor,  Newser User
Posted Dec 30, 2009 12:20 PM CST
A GMAC sign is shown at a GM/Chrysler dealership in Oakland, Calif.   (AP Photo/Paul Sakuma)
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(Newser) – GMAC is set for another $3.5 billion from the government—this on top of more than $12.5 billion since last December. The latest infusion comes amid an overhaul as the firm grapples with mortgage-linked losses, aiming at a return to profitability in the first quarter of next year, the Wall Street Journal reports. The company is seeking to get ready to pay taxpayers back, says a rep.

The TARP-authorized move follows a government pledge to give GMAC as much as it needs to bridge a capital gap; the injection is smaller than a previously projected $5.6 billion. It is the first such payout in a few months as the government looks to cut down on TARP expenditures. Other banks have already repaid some $175 billion.

 

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