GMAC seeking third bailout - report

U.S. Treasury likely to inject another $2.8 billion to $5.6 billion in troubled lender, Wall Street Journal says.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By CNNMoney.com staff

Find your next Car


Cars that wrecked Chrysler
Chrysler was king of the hill with its 300 series just a few years ago. Oh how the mighty have fallen.

NEW YORK(CNNMoney.com) -- GMAC Financial Services is seeking a third round of bailout funds from the U.S. Treasury Department, according to a report in the Wall Street Journal.

Talks over a fresh lifeline are at an advanced stage and the U.S. government could provide an additional $2.8 billion to $5.6 billion to the lender, the report said, citing people familiar with the matter.

The U.S. has already injected $13.4 billion in the lender since December 2008 and owns a 35.4% stake in the firm, which is the primary lender to customers of General Motors and Chrysler.

If GMAC receives the additional taxpayer money, it would likely be in the form of preferred stock, the Journal said.

GMAC provides financing for both General Motors (GM, Fortune 500) and Chrysler customers. The company, which is also a home mortgage lender, has been wracked by huge losses in recent quarters and hit hard by the decline in auto sales and turmoil in the housing market.

The company reported a net loss of $3.9 billion on revenue of $1 billion for its second quarter ended June 30. At that time, GMAC also said it had assets totaling $184 billion.

GMAC was once a major driver of General Motors' earnings before GM sold a majority stake to private equity firm Cerberus Capital Management LP and other investors in 2006. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
8 great convertibles for summer Slap on some sunscreen and hit the open road in one of these fun open-top cars. More
Corporate America celebrates gay marriage decision Big business took to Twitter to celebrate Friday's historic Supreme Court decision. More
Vacation experiences of a lifetime From spending months at sea cruising across the world to stepping right up to sea lions in their natural habitat, luxury travel network Virtuoso surveyed nearly 6,000 people from 60 countries to find out which vacation destinations top their lifelong bucket lists. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play