GMAC granted 6 billion as auto lender "support"

GMAC was obviously a trickle down effect of the sludgy auto industry, as it posted a total of $7.9 billion over the last five quarters due to the credit crunch. So, with the impending emergency loans that are being spent on General Motors, Ford, and Chrysler, it was discussed that GMAC should become a bank holding company in order to take advantage of the TARP fund that is being disbursed to said companies.

In order to do this, government stipulations said that GM and Cerberus had to give up their ownership. Done...Kind of. The US Treasury is staking 5 billion to purchase part of GMAC LLC, and will also be lending GM another $1 billion to GM so it can participate in a rights offering at GMAC connected to the company’s move to become a bank holding company. The $1 billion will be offered separately of the $13.4 billion.

The move is said to basically "double up efforts" to assist the auto industry in terms of lending and be able to get the crisis that has been the worst since the great depression hopefully back to where "things need to be". Again, I certainly hope that this pays off because the eggs seem to piling up in one basket more than others...

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GMAC granted 6 billion as auto lender "support"

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