A $23 Billion Bailout For GMAC?

After getting slapped around earlier this week, shares of Ford (F) and GM (GM)  are rallying a bit today following the news that GMAC had won approval to become a bank holding company, thus making it eligible for a bailout. How much will the Cerberus co-owned financing firm get? Possibly up to $23 billion.

Reuters: “While GMAC has not quantified its capital injection request from Troubled Assets Relief Program (TARP), we estimate the company could have applied for up to about $6.3 billion,” CreditSights analysts Richard Hofmann and Adam Steer said in a report late on Thursday.

This is based on capital injections being limited to 3 per cent of risk-weighed assets, the analysts said.

GMAC may also be eligible to sell up to $17.5 billion in bonds backed by the Federal Deposit Insurance Corp if approved to sell debt under the government’s Temporary Liquidity Guarantee Program (TLGP), CreditSights said.

See Also:
What Auto Bailout? Car Stocks Hammered

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