GMAC Seeks Fresh Lifeline
October 28, 2009 11:28 AM
Troubled auto financier, GMAC Financial Services Inc. is seeking a third capital infusion from the government. It wants at least $ 2.8 billion more of the tax payers’ funds to improve its balance sheet and solidify its auto finance business. People who are in the know say that the government may help GMAC, which has $ 181 billion in assets.
If GMAC collapses, then, many local car distributors may be unable to introduce new cars. GMAC is the financier for about 15 million borrowers. It supports thousands of GM and Chrysler dealers.
It is not just the Treasury that is helping GMAC. Even Federal Deposit Insurance Corp (FDIC) is adding its might. FDIC will guarantee an additional debt of $ 2.9 billion. That will help GMAC to ask investors to subscribe to its debt instruments.
