This news is from WASHINGTON-- The US Treasury unveiled a six-billion-dollar package Monday to assist GMAC, the troubled financial arm of General Motors seen as vital to the survival of America's largest automaker.
The Treasury said in a statement it would purchase five billion dollars in senior preferred equity with an eight percent dividend from GMAC, which is also partially owned by Chrysler parent company Cerberus Capital Management, and make a one-billion-dollar loan to General Motors.
In exchange, Treasury would receive warrants from GMAC in the form of additional preferred equity equal to five percent of the preferred stock purchase and would be paid a nine-percent dividend if used.
Ever wonder how the money came about?
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