GMAC Looks To Repay TARP Funds; Hires Citigroup And Goldman Sachs For Advice (C, GS)

According to Bloomberg, GMAC Inc. has hired Goldman Sachs (NYSE: GS) and Citigroup (NYSE: C) to advise it on the repayment of the TARP funds it took from the U.S. government.

The government has a 56.3 percent stake in GMAC Inc. The car lender will seek advice from the banks to examine the repayment strategies and options for its loss making mortgage unit.

An Oversight panel report suggested that GMAC may not be able to repay all of the TARP funds it borrowed. The taxpayers could lose up to $6.3 billion.