GMAC Gets More Bailout Funding

GMAC is in line to get an additional $3.5 billion in assistance from the Treasury Department to cover mortgage losses from its troubled Residential Capital unit, according to published reports. Losses due to ResCap's mortgage operations totaled $3.9 billion for the first three quarters of 2009, including a $747 million loss in the third quarter. Treasury is expected to announce the $3.5 billion capital infusion soon, according to the Wall Street Journal, and GMAC is expected to announce a large writedown of its mortgage assets, as well. "GMAC has been conducting a strategic review of its business and evaluating options to address the challenges at ResCap and the mortgage operations," a GMAC spokeswoman said Wednesday. "We have no specific actions to announce at this time," she added. Treasury officials could not be reached for comment.