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GMAC May Receive Third Bailout From The Government (GMA)

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GMAC Inc. (NYSE: GMA) is in talks to receive another bailout from the government amounting between $2.8 billion to $5.6 billion on top of the $13.5 billion already issued to them. In exchange of the bailout, the federal government will be receiving preferred stock that could expand their already 35.4% share of the company. In addition to the bailout money, GMAC also plans to generate $2.9 billion in funds by selling three year notes guaranteed by the FDIC.

GMAC is the only bank to go through the stringent stress test and end up still needing a bailout. GMAC will be reporting earning on November 4, 2009. The company has reported losses in seven of the last eight sessions. It does not seem like the Government will be calling for the ousting of the top executives in return for the bailout.

Posted-In: FDIC Federal GovernmentNews Politics Management Markets

 

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