Treasury Antes Up in Auto Bailout

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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.

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