After failing a bank “stress test” in May, GMAC was given six months to raise $11.5 billion. Looks like as much as nearly half that money may come from the federal government.
Apparently, GMAC is in advanced talks with the Treasury Department for another cash infusion — this time, as much as $5.6 billion, according to the Wall Street Journal. (The amount could be as little as $2.8 billion.) The government has already funneled $12.5 billion into the captive-turned-bank — $5 billion in December 2008 and $7.5 billion this past May.
The latest cash outlay would come in exchange for preferred stock, which would raise the government’s 35.4% stake in the company if the shares were converted to common equity.