US takes majority stake in GM’s former financing arm GMAC
December 31st, 2009 - 5:17 am ICT by IANS
Washington, Dec 31 (DPA) The US government will loan another $3.8 billion to car financier GMAC, a former subsidiary of General Motors, and will take a controlling stake of 56 percent, the Treasury Department said Wednesday.
The Treasury had already loaned GMAC $12.5 billion and taken a 35-percent-stake in December 2008 to help save the ailing company from bankruptcy. GMAC has been one of the firms worst hit by the financial crisis and slump in car sales.
GMAC has struggled to raise money from private investors and revive lending to consumers, but the new loan is less than the $5.6 billion the Treasury predicted GMAC would still need in May.
The Treasury said the bankruptcies earlier this year of carmakers GM and Chrysler, which are also largely owned by the government, had hurt GMAC less than expected.
The new stake allows President Barack Obama’s administration to appoint two new directors to GMAC’s board, the Treasury said. That would make four of the firm’s nine directors government appointees.
- GM may not need additional loans to survive: report - Jan 08, 2009
- $6 bn bailout package for US auto giant GM - Dec 30, 2008
- Chrysler repays $5.1 billion in TARP loans - May 25, 2011
- Chrysler repays $7.6 bn to US, Canada - May 25, 2011
- Ford's award sweep signals hope for US auto industry - Jan 12, 2010
- GM files for bankruptcy, to eleminate over 30,000 jobs (Second Lead) - Jun 01, 2009
- Carmakers post major sales jump in US market on deals - Apr 02, 2010
- New start for GM as it exits bankruptcy - Jul 11, 2009
- Ralph Nader Tries To Delay GM IPO - Nov 12, 2010
- Restructure or face bankruptcy, Obama tells US carmakers - Mar 30, 2009
- Chrysler declaring bankruptcy, seals deal with Fiat (Lead) - May 01, 2009
- Wall Street gains as GMAC gets government funds - Dec 31, 2008
- GM Repays The Loans Before Time To US And Canada Governments - Apr 22, 2010
- GM to sell off its Opel subsidiary - Sep 10, 2009
- General Motors files for bankruptcy (Lead) - Jun 01, 2009
Tags: ailing company, bankruptcies, bankruptcy, barack obama, car sales, carmakers, chrysler, financial crisis, financier, general motors, gm, gmac, government appointees, majority stake, percent stake, private investors, s board, slump, treasury department, us government