Treasury Antes Up in Auto Bailout


The Treasury added $6 billion Monday night to the $17.4 billion bailout, chiefly to help the financial arm of General Motors Corp.

The Treasury Department is injecting $5 billion directly into GMAC in exchange for preferred equity shares that pay an 8% dividend. GMAC also is issuing warrants to Treasury in the form of preferred stock.

The government will also lend $1 billion to GM that the automaker will invest in its financing arm.

Related Topics: News, The Page

Post a Comment

You must be logged in to post a comment.

  • Tweets

    View More Tweets From @TIME

Your browser, Internet Explorer 8 or below, is out of date. It has known security flaws and may not display all features of this and other websites.

Learn how to update your browser