October 28, 2009 12:14 PM

As an astonish example of just how messy this government bailout process can become, GMAC announced that it will require additional funds from Treasury. For those of you keeping track, this is round three (the only company to do so), as taxpayers become increasingly intertwined with a company that by the governments own less-than-rigorous standards failed its “stress test.”



GMAC failed its (not-so) stress test earlier this year and was directed by Treasury to raise an additional $11.5 billion in capital. While the other banks that failed were mostly able to raise funds from private investors, GMAC is looking to tax payers to make up nearly half of its obligation.

History



- December 2008 – GMAC is given $5 billion – at the hearing before congress this was claimed to be a onetime offer

- May 2009 – GMAC is infused with $7.5 billion in additional funds

- October 2009 – FDIC will guarantee $2.9 billion in debt (GMAC debt is junk status remember, and this is after the original $7.4 billion earlier this year)

- October 2009 – Treasury in talks with GMAC about adding up to an additional $5.6 billion which would increase its ownership stake to 35%



Treasury officials declined to comment on whether these additional measures are related to its already hefty investment in the faltering company.








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