The Treasury Department plans to announce as early as Wednesday afternoon that it will give GMAC Inc, parent company of Planet Money sponsor Ally Bank, around $3.5 billion in additional capital, on top of $12.5 billion already received since December 2008, sources told The Detroit News.
The announcement, expected within days, will coincide with GMAC taking additional steps to absorb losses related to its mortgage operations, these people said. The cleanup is designed to return the Detroit-based finance company to profitability in the first quarter of 2010, according to the paper.
The new capital will likely allow GMAC to avert placing its ailing mortgage unit, Residential Capital LLC, or ResCap, into bankruptcy, the newspaper reported, citing these people.
"As we have previously stated, GMAC has been conducting a strategic review of its business and evaluating options to address the challenges at ResCap and the mortgage operations," said GMAC spokeswoman Gina Proia in an statement.
The U.S. Commerce Department is reportedly set to impose preliminary anti-dumping duties on imports of steel grating from China.
The duties were imposed after Chinese steel-grating imports surged to $91 million in 2008, up from $8.8 million in 2006, reports cited the U.S. Commerce Department as saying Tuesday.
Dumping is the practice of selling a product in a foreign market for less than either the price in the home country or the cost of making the product as a way of gaining long-term market share.
U.S. trade officials assigned a preliminary duty of 145.18% to all Chinese steel grating, except those from two producers -- Ningbo Jiulong Machinery Manufacturing Co. and Sinosteel Yantai Steel Grating Co. -- whose product will reportedly only face a 14.36% duty.
Steel grating is commonly used in flooring applications, such as walkways and platforms.
The Commerce Department will make a final ruling in April, the reports said.
And an unprecedented 22 percent of U.S. consumers said they did not finish their Christmas shopping this year as fewer discounts kept many wallets closed, according to a survey released on Tuesday.
While nearly 63 percent said bigger deals were needed to loosen their purse strings, about 11 percent blamed bad weather that hit the U.S. East Coast and Midwest on the weekend before Christmas.
In a typical year, 82 percent to 88 percent of consumers complete their holiday shopping.