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GMAC seeks third bailout from US Treasury after stress test
CAR financing company GMAC is in talks with the US Treasury Department about a third bailout of around $5.6bn (£3.4bn).
GMAC, which has already received $12.5bn of taxpayer funds, will issue preferred stock, boosting the government’s 35.4 per cent stake if existing shares are converted into common equity.
GMAC is the only one of the banks that underwent stress tests earlier this year that needs more government capital.
The others were able to raise capital on their own and several have already paid back the taxpayer funds they received.
The stress test found GMAC needed $11.5bn to shore up its capital base. Last night GMAC sold $2.9bn in government-backed debt to plug the gap.