U.S. Treasury talking to GMAC about additional cash infusion

According to an Obama administration official, the U.S. Treasury Department is in talks with GMAC Financial Services Inc. about another possible cash infusion to the company. GMAC, which is the traditional lender to General Motors Company dealers and customers, is also looking to taking over the auto loan business of Chrysler Group LLC.

“GMAC is the only one of the banks that went through the stress test to need additional government capital,” Treasury spokesman Andrew Williams said Tuesday night. “All other institutions were able to raise any necessary capital from investors and several of these firms have already paid back the taxpayer.”

Williams declined to say how much additional money the Treasury is looking to put into GMAC. A report by The Wall Street Journal said that the government is “likely” to inject another $2.8 billion to $5.6 billion.

GMAC has already received $12.5 billion of taxpayer money.

– By: Omar Rana

Source: Reuters