A bailout watchdog warned Thursday that the three infusions of federal for troubled lender GMAC could end up costing taxpayers billions of dollars.
In a new report, the Congressional Oversight Panel said it is "deeply concerned" that the Treasury Department has not insisted that GMAC "lay out a clear path to viability or a strategy for fully repaying taxpayers."
To date the government has dished out $17.2 billion for GMAC, giving taxpayers a 56 percent stake in the credit arm of General Motors. The latest infusion of federal funds for GMAC came in late December, shortly before the lender announced a fourth-quarter loss of $5 billion.
While the watchdog acknowledged that the government bailout of GMAC "played a major role in supporting the domestic automotive industry," the Panel cautioned that the bailout "came at great public expense" and may also have obstructed "the growth of a more competitive lending market." - ABC News Story
No comments:
Post a Comment