General Motors Assurance Company, the lending arm of GM and already the proud recipient of $12 billion worth of bailout money from the federal government has its hand out again:
In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.
The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock.
That also could increase the public stake in the company from its current 35 some-odd percent if it’s converted into common stock.
I am not too big to say I told you so.
Stop digging, for criminentlies.
A far, far better use for the money would be to replace part of the current federal fleet with more efficient Fords. The feds already sell about 35,000 vehicles a year.