Treasury Dept. Bolsters GMAC With $5B Investment

Law360, New York (December 30, 2008, 12:00 AM EST) -- Almost one week after the Federal Reserve gave the green light for struggling GMAC Financial Services LLC to become a bank holding company, the U.S. Department of the Treasury has announced that it will provide $5 billion to GMAC to help prevent a bankruptcy filing and revive the domestic automotive industry.

In a transaction that was finalized Monday, the Treasury Department paid $5 billion in exchange for preferred shares of GMAC, the arm of General Motors Corp. that offers mortgage and automotive financing to consumers and...
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