GMAC loses exclusive GM financing in Treasury loan agreement

In a filing today with the Securities and Exchange Commission (SEC) GMAC revealed that it will no longer have the exclusive right to finance all of General Motors vehicles, and it will cease all lease financing as well. The new business arrangements are part of the terms of GMAC’s agreement with the U.S. government to [...]

GMAC drums up $21.6 billion in debt-for-equity swaps

GMAC has leveraged the recent promise of U.S. Treasury funds to boost its lending capacity, and now it has generated another $21.2 billion in cash via debt-for-equity swaps with its bondholders. The fund raising is part of the company’s’ effort to raise enough cash to meet the regulatory requirements of a bank holding company, and [...]

U.S. Treasury secures $6 billion in aid for GMAC

The U.S. Treasury on Monday announced it will be making $6 billion in Troubled Assets Relief Program (TARP) money and other funding available to troubled car lender GMAC. The Cerberus and GM-owned entity will get $5 billion in TARP funds plus another $1 billion from a Treasury-backed General Motors purchase of GMAC equity.
Last week the [...]

U.S. Federal Reserve approves GMAC request for bailout eligibility

The U.S. Federal Reserve on Wednesday approved GMAC’s request to be considered a bank holding company, effectively paving the way for the auto financing company to apply for federal aid from the $700 billion bailout fund established earlier this year. The news breathes new life into the troubled finance agency’s future, as bankruptcy had been [...]