GMAC wants another 5.6 billion dollars
The woes of General Motors does not seem to be ending. The finance arm of General Motors, GMAC, has already been surviving the past two years only with the government fund of 12.5 billion US dollars. The company is still continuing to face huge losses on its portfolio, which is forcing it to seek another 5.6 billion funding from various sources before the November 9th deadline.
If the company is unable to find the funds before the deadline, then it might be left to the Obama administration to either bail it out or allow it to collapse. If the company is allowed to collapse, then it would lead to instant drop in Automobile sales for the next few months, apart from adding to the bad debts of many banks.
The government would also lose most of the 13 billion dollars it has given to the company, apart from paying out the amounts guaranteed by US FDIC.