DETROIT--The U.S. Treasury Department is preparing to announce as early as Wednesday that it will invest an additional $7.5 billion in lender GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company, the Detroit News reported.
GMAC, which also provides loans for consumers to buy General Motors Corp (GM: 1.43, 0, 0%) and Chrysler LLC vehicles, has been in talks for several weeks to secure additional capital, the newspaper said.
The U.S. Treasury declined to comment. A GMAC spokesman could not be immediately reached for comment.
U.S. Treasury Secretary Timothy Geithner told Reuters Television recently that the administration will provide substantial support to GMAC, a vital provider of financing for buyers of U.S.-made cars.
Treasury and U.S. banking regulators have said GMAC needs to raise $11.5 billion to fill a capital hole it could face if the economy were to deteriorate further. - FOX Business Story
Obama is buying a Major Stake of GMAC with our money. I am sure it is just another too big to fail scheme to control more of the US Market.
Just think about were America would be without all of the Obama Spending. Just think how much better off we would be if we had wasted so much money saving all of these businesses from themselves. If we had just let them fail, file for bankruptcy and then put a fraction of the money that we wasted were it actually would have done some good.
Ahhhhhh. What could have been.
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