GMAC, the car financing company which is poised to merge with Chrysler Financial, is set to receive up to $5.6bn in a capital injection from the US Treasury, paving the way for the government to become the majority shareholder. The company, formerly the financing arm of GM, was one of 19 institutions to submit to a US capital adequacy programme completed in May. That determined that GMAC had a shortfall, which will now be made up by the government in the form of preferred equity.

This entry was posted by Gwen Robinson on Thursday, October 29th, 2009 at 4:50 and is filed under Capital markets. Tagged with Chrysler Financial, GMAC. Edit this entry.