WASHINGTON - THE Treasury Department said that it will provide US$5 billion (S$7.19 billion) to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., in a move that's expected to stave off a bankruptcy protection filing at the company but also severely limit GM's control over it.
In exchange for the slice of the US$700 billion bank rescue package, the government will receive preferred shares that pay an 8 per cent dividend and warrants to purchase additional shares in return for the money, the department said.
