Unable to obtain the necessary funds from private investors to bolster reserves against unexpected losses, GMAC has secured another $3.8 billion in capital from the federal government.
To date, the Treasury Department has pumped $16.3 billion into the former General Motors captive — enough for a 56% stake. Now the government gets to appoint four of the company’s nine directors.
GMAC, which was granted bank-holding-company status in December 2008, was one of 19 banks to undergo a “stress test” of its capital reserves earlier this year. GMAC was the only one unable to secure the necessary funds.
GMAC marks the sixth company taken over by the federal government in the past 15 months. The others are AIG, Citigroup, General Motors, Fannie Mae, and Freddie Mac.