GMAC gives up some GM car financing in bailout
12:58 PM Fri, Jan 02, 2009 | Permalink
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DETROIT -- GMAC will no longer have exclusive rights to provide low-interest loans to people who buy General Motors Corp. vehicles, and it will stop financing leases under a complex deal to get federal aid for the troubled lender, according to The Associated Press. GMAC LLC disclosed the terms of the deal in a filing early Friday with the U.S. Securities and Exchange Commission. The lender said the federal government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy. GMAC is the financial arm of General Motors Corp. and is responsible for making car loans and financing dealer inventories 
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