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    Default US Government Seeks 56% Controlling Stake In GMís Former Financing Arm GMAC

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    The US government plans to take about 56% controlling stake in General Motorsí former financial subsidiary GMAC. Accordingly, it will loan $3.8 billion to the financial arm for that purpose. This information was communicated by the US Treasury Department on Wednesday.

    The Treasury Department had already loaned GMAC $12.5 billion in the first phase and taken a 35% stake in December 2008 to help the company recovering from bankruptcy. Earlier, GMAC was hit by the financial crisis and needed instant loan from the investors.

    The Treasury Department had predicted in May that it needed about $5.6 billion to revive its car sales. However, the rate of bankruptcy is less than the other car makers like GM and Chrysler.

    According to the new stake, the US government would appoint two directors in GMACís nine director board.

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