GMAC needs more of our money. It's looking for between $2.8 and $5.6 billion. This is on top of the $12.5 billion we've given them via TARP and the FDIC's guarantee of $7.4 billion of GMAC's debt and a waiving of rules by the Fed and an agreement by us that GMAC is now a bank (and thus can borrow from the Fed). In exchange for all this we own 35.4% of the company.
We are the lenders of last resort for GMAC, because no one wants to lend to them. Shouldn't banks be doing much of the lending to the auto industry? Would they? They haven't been exactly passing out money for home loans.
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