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GMAC Asks for Fresh Lifeline

hypocritexposer

Well-known member
* OCTOBER 28, 2009

GMAC Asks for Fresh Lifeline
Lender in Advanced Talks for Third Slug of Taxpayer Cash -- at Least $2.8 Billion More



By DAN FITZPATRICK and DAMIAN PALETTA

In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.

The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government's 35.4% stake in the company could increase if existing shares eventually are converted into common equity.


http://online.wsj.com/article/SB125668489932511683.html?mod=djemalertNEWS#printMode
 
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