ANNOUNCEMENT 30 Dec 2009In December 2009, the government of the United States of America announced a change in private-sector financial support.
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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.