GMAC Gets $3.5B From U.S. Treasury

After months of talks, the Treasury Department has announced that it will be giving $3.5 billion to Detroit-based finance company GMAC. The amount is in addition to the $13.4 billion already invested in GMAC last year.

This year has been a turbulent one for GMAC according to personnel at Manchester Used Cars. The company has been evaluating its automotive and residential mortgage financing programs to ensure its growth and ability to repay government loans in the future. Despite setbacks, GMAC continues to be the main lender for GM and Chrysler dealerships and their customers.

Last December, GMAC became a bank holding, allowing it to receive aid from the Treasury. The Treasury now holds a 35.4 percent equity stake in the financial institution. Earlier this year, the Treasury stated that it would invest up to $5.6 billion in GMAC, indicating that more money could be alloted if the $3.5 billion is not sufficient capital.

Although auto sales in 2009 were down compared to last year, GMAC’s auto lending business has shown positive signs of life. In the third quarter of this year, the company showed a profit of $395 million, and its online consumer banking unit, Ally Bank, continues to receive plenty of new deposits.

* * *

Keep track GMAC news on this auto financing blog.

Tags: , , , ,

119 Responses to “GMAC Gets $3.5B From U.S. Treasury”

  1. RAY says:

    birth control pills for pms symptoms

    Buy_drugs without prescription…

  2. CHRIS says:

    rapid weight loss

    Buy_generic drugs…

  3. HOMER says:

    dhea treatment of depression

    Buy_drugs without prescription…

  4. FREDRICK says:

    colon cancer lymph node

    Buy_without prescription…

  5. RAMON says:

    seed implant for prostate cancer

    Buy_drugs without prescription…

  6. FRANCIS says:

    adult male wheezing new onset

    Buy_drugs without prescription…

  7. JIM says:

    children during the depression

    Buy_drugs without prescription…

Leave a Reply

You must be logged in to post a comment.