US to Hand Ailing GMAC Another $3.5B

GMAC is set for another $3.5 billion from the government—this on top of more than $12.5 billion since last December. The latest infusion comes amid an overhaul as the firm grapples with mortgage-linked losses, aiming at a return to profitability in the first quarter of next year, the Wall Street Journal reports. The company is seeking to get ready to pay taxpayers back, says a rep.

The TARP-authorized move follows a government pledge to give GMAC as much as it needs to bridge a capital gap; the injection is smaller than a previously projected $5.6 billion. It is the first such payout in a few months as the government looks to cut down on TARP expenditures. Other banks have already repaid some $175 billion.
(More GMAC stories.)