GMAC seeks $5.6 billion more from government

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gmac

Several sources are saying that GMAC, the former lending arm of GM, is negotiating with the Treasury to get as much as $5.6 billion more in bailout money. The financial firm has already received $13.5 billion from the federal government.

The main reason for helping GMAC is obvious; GM relies on the company to provide auto loans to dealerships and individual consumers. If its ability to lend were compromised, GM could be badly hurt. A lack of leasing options is already being blamed for much of Cadillac's 44 percent drop in sales during the first nine months of this year. While GMAC might survive without the government funds, its ability to make new loans would be crippled.