Embattled auto and mortgage lender GMAC Financial Services, one of a number of major banking firms bailed out by the government over the last year, is poised to receive an additional $3.5 billion in federal aid.
The lifeline would be a third helping of bailout funds to supplement $12.5 billion in taxpayer money it has collected since December, according to published reports. An official announcement is expected within days.
The Detroit lender, which is 35% owned by the government, said today that it had “no specific actions to announce.” The company has been in talks with the Treasury Department for months about another injection of funds.
“GMAC has been conducting a strategic review of its business and evaluating options to address the challenges in its mortgage operation,” the company said. “Critical objectives in the process would be to take actions that position GMAC for improved financial performance and to repay the U.S. government.”
Read More: – By Tiffany Hsu, LA Times