GMAC, the Detroit based lender, will reportedly receive $7 billion as a result of the bailout they were given in December. They were allowed to turn into a bank holding company in December so that they could have access to the Treasury's bailout fund (read my story GMAC Financial Services Changes Name to Ally Bank). The government funds will be used for financing for the customers of General Motors and Chrysler. More Government stress tests this month revealed that GMAC will need to raise at least $11.5 billion to hold up under the weight of the worsening depression.
The large amount of home foreclosures as well as declining auto sales has caused the company to lose money over the last year and a half. GMAC will also change its board members and should be announcing the permanent board by tomorrow, according to a March 25 regulatory filing.
Thursday, May 21, 2009
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