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U.S. markets recover from steep losses
DETROIT, Dec. 30 (UPI) -- The U.S. Treasury Department is set to extend $3.5 billion in new TARP funding to automobile finance firm GMAC, sources close to the deal said.
The company has already received $13.4 billion from the $700 billion Troubled Asset Relief Program that was designed to bail out financial firms, The Detroit News reported Wednesday.
GMAC has been discussing extra funding with the Treasury for months. Previously, the Treasury said GMAC was eligible to receive an additional $5.6 billion.
The firm, which had extended its investments into mortgage lending, changed its status to a bank holding company in December 2008 to make itself eligible for bailout funding.
GMAC spokeswoman Gina Proia said the firm was "evaluating options to address the challenges at ResCap and the mortgage operations."
After the Treasury conducted so-called stress tests on the nation's bank early this year, it emphasized GMAC needed a larger capital base to cushion the company against future downturns.
In November, Chief Executive Al de Molina resigned, and former Citigroup senior executive Michael Carpenter stepped in to take his place. The company then asked the Treasury to hold off on a new loan until the new management team had settled in, the newspaper said.
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