GMAC set to get an additional $7.5 billion in bailout next week

May 10, 2009 by · Leave a Comment
Filed under: Industry News 

Surprise, surprise.  Who would of thought that we would give more bailout money to GMAC (sarcasm)?  Looks like GMAC needs another $7.5 billion in our hard earned tax dollars to provide low cost (or no cost) financing for more American made cars that people don’t want to buy.

If we are going to support our native automotive industry, it would be nice if we made them make cars and trucks are more viable in our current economic environment.  What is even more interesting in this press release, is that our Treasury Secretary said that he thinks GMAC will need even more bailout in the future and he has determined we are ready to give it as needed…..period.

News (Reuters):

GMAC, the troubled automobile lender, may receive a $7.5 billion infusion from the U.S. government as early as next week, the Washington Post reported in its Saturday edition, citing unnamed sources.

The funds for GMAC would come as part of an Obama administration package that aims to revive the nation’s financial system even after it found that major banks need less financial aid than expected, the Post said.

U.S. Treasury Secretary Timothy Geithner told Reuters Television on Friday that the administration will provide substantial support to GMAC, a vital provider of financing for buyers of U.S.-made cars.

“It’s likely, again, that GMAC will need to take additional capital from the government and we’ll be prepared to provide that,” Geithner said in the interview. (Emphasis added)

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