ANNOUNCEMENT 30 Dec 2009
In December 2009, the government of the United States of America announced a change in private-sector financial support.NUMBER OF INTERVENTIONS
1
SOURCE
See the material hyperlinked in the description.
Capital injection and equity stakes (including bailouts)
The U.S. Department of the Treasury announced on December 30, 2009 that it will expand the bailout of GMAC, taking a majority stake in the financial services company. Prior to this action the Treasury had invested $12.5 billion in preferred stock of GMAC. Treasury owns $13.1 billion in preferred stock in GMAC, through purchases and the exercise of warrants, and 35 percent of the common equity in GMAC.
As described by GMAC in a press release, this is part of a three-pronged set of capital actions:
Formerly known as the General Motors Acceptance Corporation, GMAC is principally engaged in financing the sale of automobiles. It became an independent finance company in 2006 when General Motors sold a 51 percent stake in the company to a group of investors led by Cerberus Capital Management, L.P. The firm had approximately $178 billion in assets, with 15 million customers worldwide as of September 30, 2009.
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