U.S. Treasury to exit its investment in GMAC Financial Services this year
By Andrew C., 26 Aug, 2010. 0 Comments
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Later this year, the U.S. Treasury Department is expected to exit its investment in GMAC Financial Services. According to two senior Treasury officials, there will be a gradual sale of shares following a public offering. In written testimony before the Congressional Oversight Panel, the auto finance giant is now capitalized at levels well above historical industry averages, said Ron Bloom, senior advisor to Treasury Secretary Timothy Geithner, and Jim Millstein, chief restructuring officer. They also stated that GM's new ability to secure funding for its ongoing operations is "a critical step toward independence." As the result of several capital infusions that amounted to over $17 billion, the government now holds 56.3% of GMAC's common equity. Earlier this month, GMAC raised $2 billion in unsecured debt on terms comparable to a recent financing completed by Ford Motor Credit, the finance arm of Ford Motor Co. [via autonews]
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