GMAC bonds rallied on Wednesday ahead of an expected announcement from the US government that it will invest another $7bn in the company, through which it could take a majority stake, in an effort to shore up the automotive industry. GMAC is the last of the 10 leading US banks that were deemed by the government to have capital shortfalls to reveal its plans for raising that capital. GMAC, which was told it needed another $11.5bn in capital, has been widely expected to require additional government support.

This entry was posted by Gwen Robinson on Thursday, May 21st, 2009 at 4:58 and is filed under Capital markets. Tagged with GMAC. Edit this entry.