Govt Gives GMAC $3.8 Billion in New Aid

By: Jeannine Aversa and Stephen Manning AP Email
By: Jeannine Aversa and Stephen Manning AP Email

WASHINGTON (AP) - The government is providing a fresh $3.8 billion cash infusion to stabilize GMAC Financial Services as it struggles with hefty losses in its home mortgage unit.

The Treasury Department says the new aid, which comes from a taxpayer-financed bailout fund, is less than the roughly $6 billion the government had earlier thought GMAC would need to stabilize the company.

The fresh infusion is on top of $12.5 billion in taxpayer money Detroit-based GMAC has already received from the government. The new agreement will boost the federal government's ownership in GMAC to 56 percent, from 35 percent.


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