Government Wants GMAC to Buy Chrysler Financial
News out of Washington, D.C. this morning has the government working to engineer a deal for GMAC to purchase Chrysler Financial.
Chrysler Financial is running out of money, according to the article in the Washington Post, but GMAC would also need an infusion of capital to purchase its captive competitor, according to the report. GMAC became a bank holding company in December.
The FDIC and Federal Reserve would both have to sign off on the acquisition. According to the Post:
[GMAC] also needs access to an FDIC program that allows companies to borrow money at lower interest rates, sources said. And administration officials want the Fed to relax a rule that would restrict the amount of loans that the enlarged GMAC could make to Chrysler’s customers and dealers because both firms are owned in part by the same company, Cerberus Capital Management.
