NEW YORK (
GMAC Financial Services
received an additional $3.79 billion from the U.S. Treasury Department as the added infusion raises the government's stake in the automotive lender to 56% from about 35%.
The government had previously given GMAC aid of $12.5 billion.
GMAC, in a statement late Wednesday, said the latest actions would protect it from "further adverse effects" related to Residential Capital, GMAC's mortgage division. GMAC said it was exploring strategic alternatives for the ResCap division.
GMAC also said it would recognize a pretax charge of about $3.8 billion, with $3.3 billion related to the mortgage writedowns at its ResCap and Ally Bank divisions.
Ally Bank was recapitalized with $1.3 billion cash from GMAC.
"These decisive balance sheet actions and resulting capital infusions are intended to minimize the impact on GMAC and Ally Bank of any significant future losses related to ResCap's legacy mortgage business," said GMAC CEO Michael Carpenter, in a statement. "By protecting the financial performance and strength of our core automotive finance operations, we expect to increase the pace at which we can fully repay the U.S. taxpayer. These actions will also allow GMAC to pursue strategic alternatives for ResCap and the mortgage business."
The U.S. government, with its last cash infusion to GMAC, now holds a majority in the three companies it bailed out -- GMAC,
American International Group
-- Reported by Joseph Woelfel in New York.
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