As first reported by the Detroit News this morning, the Treasury is plowing $7.5 billion more into auto lender GMAC, the Wall Street Journal now confirms.
Yep, after all that hardball about the auto bondholders and forcing them to take a haircut, the bondholders in GMAC are getting a straight up bailout.
WASHINGTON — The Federal Reserve on Monday laid out rules for banks seeking to repay taxpayer bailout funds, clearing the way for the 19 largest financial institutions to wind down their reliance on government support.
May 31 (Bloomberg) -- A majority of General Motorsbondholders agreed to support a plan to exchange their debt foran ownership stake in the company as high as 25 percent.
General Motors faced its last obstacle to a quick and orderly bankruptcy yesterday, as its lenders voted on exchanging their claims for a stake in the restructured automaker. Under orders from the Treasury Department.
(Adds comment a from General Motors spokesman in the 11th paragraph.) Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- General Motors Corp. (GM) bondholders mounted alobbying.
May 21 (Bloomberg) -- The United Auto Workers said itreached a tentative agreement with General Motors Corp. and theU.S. Treasury to modify the carmaker’s 2007 labor contract and ahealth-care trust for union retirees.
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