When the U.S. government conducted bank stress tests earlier in the year, one of the financial institutes that didn't pass the mid-term exam was GMAC. At the time, the government told GMAC that it would need another $5.6 billion
to weather another economic calamity, but the Detroit Free Press
reports that the final number will be actually be $3 billion (The Wall Street Journal
is reporting $3.5 billion
). The money will reportedly come courtesy the $700 billion TARP fund that kept Chrysler
, General Motors
and many banks afloat during the worst days of the recession. GMAC has already received $12.5 billion from the federal government.
GMAC, which is now 35-percent owned by the federal government, now controls financing for both GM
. GMAC spokesperson Gina Proia declined to discuss any cash infusion due to the fact that the government hasn't officially announced anything, but she did add that the financing company "has been conducting a strategic review of its business and evaluating options to address the challenges in its mortgage operation." An official announcement is expected later today or sometime Thursday.
[Sources: Detroit Free Press
; The Wall Street Journal