I Guess It Is Only Money: Feds Toss $7.5 Billion More At GMAC

The Treasury Department is preparing to announce as early as today that it will invest an additional $7.5 billion in GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company.

GMAC, whose financial good health is key to providing loans for consumers to buy General Motors Corp. and Chrysler LLC vehicles, has been in talks for several weeks to secure additional capital. It had hoped to close the deal last week.

In December, the U.S. Treasury invested $5 billion in GMAC by buying preferred stock in the finance company. That stock carries a 9 percent dividend, but has no voting rights. Treasury also loaned GM nearly $900 million to buy GMAC stock.

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pageman - 5/20/2009 12:15:56 PM

+4 Boost

I can't bite my tongue on the US any longer.
Your government is turning you into a socialist society.
By a government taking control of a public company just because it is failing is SOCIALISM. Think of it. The natural order of business is if a company fails, the competition wins and carries on. To have the government bail them out and take CONTROL is pure socialism.
The US even has "HOMELAND" security. Didn't Hitler call all of his people back to the "Homeland" in the late 1930's.
Don't dismiss this. The government has now taken control of the large banks, the two largest manufacturing companies and what else?
Sig Hiel Obama. Capitalism is now dead in the USA.