GMAC Could Get Third Government Bailout
STEVE INSKEEP, host:
NPR's business news starts with more help for GMAC.
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INSKEEP: GMAC Financial Services, that's the company that was once part of General Motors, has already received $12.5 billion in a couple of earlier bailouts from the government. Now the firm and the Treasury Department are in advanced talks to shore up the lender with a third bailout. That's according to the Wall Street Journal. The company faces a crucial deadline in November for shoring up its finances.
In exchange for another bailout, taxpayers could end up with a majority stake in the company. Despite its troubles, GMAC remains a key lender for millions of borrowers and thousands of General Motors and Chrysler car dealerships in the United States. If GMAC were to fail, many dealers would be unable to bring new vehicles onto their lots.
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