Gmac, Bank Bailout | featured news

A report to be released Thursday questions the Bush administration’s decision to rescue “a company that apparently posed no systemic risk to the financial system.”

GMAC plans to return to the stock markets with an IPO in the next two years, in a move aimed at gradually exiting from government help and eventually repaying its rescue aid.

GMAC, the troubled finance company that last week scored a third government bailout, said Tuesday it expects to post a record fourth-quarter loss of $5 billion.

GMAC Financial Services is expected to receive $3.5 billion more in federal aid to further stabilize the automotive lender, The Wall Street Journal reported Tuesday.

GMAC, the car financing company, is set to receive up to $5.6bn in a new capital injection from the Treasury, filling a hole identified in the “stress tests” earlier this year and paving the way for the government to become the majority shareholder

The former financing arm of General Motors will receive $7.5 billion, which would bring its total federal assistance to more than $12 billion.