GMAC Gets $5 Billion in Bailout Money
Copyright 2014 by Virgo Publishing.
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Posted on: 12/31/2008



 

GMAC Financial Services LLC, the financing arm of General Motors Corp., will receive $5 billion from the $700 billion bank rescue program, according to a statement from the U.S. Treasury Department.

In exchange, the government will receive preferred shares that pay an 8 percent dividend and warrants to purchase additinal shares.

The assistance is part of the U.S. government's effort to aid the auto industry, and is on top of the $17.4 billion in loans the Bush administration agreed to provide to the industry Dec. 19, a Treasury Department official said.

Analysts speculated that if GMAC didn't obtain financial help it would have to file for bankruptcy protection or shut down, which would be a serious blow to GM's own chances for survival.

Source:  Yahoo Finance, GMAC Receives $5 Billion in Bailout Funds