Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

GMAC Grabs $6B Federal Lifeline

Government uses bailout funds used to buy stake in auto finance giant

By Rob Quinn, Newser Staff

Posted Dec 30, 2008 3:41 AM CST

(Newser) – The federal government is dishing out a $6 billion bailout to keep auto financing giant GMAC afloat, the New York Times reports. The Treasury Department will spend $5 billion to buy a stake in the former General Motors subsidiary, and will loan GM a further... Read full story »

COMMENTS

Read the comment policy

You need to Log in to Newser to comment. Don't have an account yet? Sign up now!

1 comment

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

What's Popular Now on Facebook

Miami Face-Eater Identified

Victim of Naked Face-Eater Fights for Life

New York Times (Source Grid »)
CNN (Source Grid »)

Treasury buys $5B stake in GMAC
Bloomberg

Money

Chrysler • Cerberus Capital Management • General Motors • Treasury Department • auto industry • bailout • GMAC • financial crisis • TARP

More Newser Stories

GM Finance Arm Converts, Will Tap Bailout

Fed approves GMAC's request to become bank-holding company

(NEWSER) - The Federal Reserve today approved a request by General Motors’ financial arm to become a bank-holding company so it can petition for money from the $700 billion bailout pot, the Wall Street Journal reports. GMAC would also have access to direct Fed loans, helping loosen credit and complement the $17.4 billion in emergency loans the White House has extended to GM and Chrysler. More»

GMAC Gets New $7B Bailout

Treasury could double the injection as it moves closer to majority stakeholder

(NEWSER) - The Treasury is prepared to inject another $7 billion into GMAC as the first stage in a new bailout that could double to $14 billion, putting the government on a trajectory to be the majority stakeholder in both GMAC and General Motors by year's end, the Wall Street Journal reports. GMAC, which provides fleet financing for dealerships as well as consumer financing for car-buyers, needs to increase reserves by $11.5 billion to offset exposure to troubled subprime lending assets. More»

White House Mulls Automaker Bankruptcies

Feds would offer support in giving automakers 'soft landing'

(NEWSER) - The Bush administration is considering “orderly” bankruptcies as one way to help General Motors and Chrysler, the New York Times reports. The government could support the companies while working on the terms of federal protection, providing what the White House calls a “soft landing.” With the possibility of using TARP funds to bail out the automakers still up in the air, President Bush said he was “worried about a disorderly bankruptcy.” More»

GM, Chrysler Revive Merger Talks

Chrysler's private equity owner signals willingness to give up a stake

(NEWSER) - General Motors and Chrysler are back in merger talks, reports the Wall Street Journal. Negotiations fizzled weeks ago as both companies viewed a merger as impractical and a potential distraction from federal bailout talks. Chrysler owner Cerberus Capital Management took the initiative to restart talks, and has signaled a willingness to give up some of its stake in the automaker. The move may be viewed by federal lawmakers as a sign that the companies are willing to go the distance to help save themselves. More»

Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

(NEWSER) - As Detroit’s Big Three await word on the fate of their much-needed bailout, an unlikely group of supporters has assembled in their corner: foreign automakers. A collapse of General Motors, Ford, or Chrysler would devastate overseas manufacturers as well, CNNMoney reports, spreading bankruptcy to suppliers around the globe and forcing dealer networks worldwide to replace failed brands. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

GMAC Grabs $6B Federal Lifeline

Government uses bailout funds used to buy stake in auto finance giant

Chrysler • Cerberus Capital Management • General Motors • Treasury Department • auto industry • bailout • GMAC • financial crisis • TARP

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

GM Finance Arm Converts, Will Tap Bailout

Fed approves GMAC's request to become bank-holding company

GMAC Gets New $7B Bailout

Treasury could double the injection as it moves closer to majority stakeholder

White House Mulls Automaker Bankruptcies

Feds would offer support in giving automakers 'soft landing'

GM, Chrysler Revive Merger Talks

Chrysler's private equity owner signals willingness to give up a stake

Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?