GMAC, an American lender, has reached out to the U.S. Government in a plea for extra money from taxpayer cash, confirms a Treasury Department spokesperson.
GMAC is formerly known as a lending arm for General Motors and has remained an important financial provider for GM and Chrysler dealers to pay for the vehicles on their lots. It also plays a significant role in the U.S. residential mortgage market.
Already the company has received bailout money totalling $12.5 billion from the government. While other banks are able to gain capital from private investors, GMAC must go back to the government which maintains a 35% ownership on the company.
If the bailout is approved, GMAC will hold the title of being the only company in the U.S. to receive a total of three bailouts. It will also show a further hold on the auto industry by the U.S. government.
The government has a majority-stake in GM and a smaller stake in Chrysler. The spokesperson from the U.S. Treasury declined to comment on whether this ownership will make it more willing to help GMAC out of its financial woes again.