Breaking News: GMAC no longer sole GM car financier

By Tom Krisher , AP, January 3, 2009 GMAC will no longer have exclusive rights to provide low-interest loans to people who buy General Motors vehicles. GMAC will no longer have exclusive rights to provide low-interest loans to people who buy General Motors Corp. vehicles, and it will stop financing leases under a complex deal to get federal aid for the troubled lender. GMAC LLC disclosed the terms of the deal in a filing early Friday with the US Securities and Exchange Commission. The lender said the federal government will get five million preferred shares of GMAC paying eight per cent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy. GMAC is the financial arm of General Motors Corp. and is responsible for making car loans and financing dealer inventories. In the filing, GMAC disclosed... [read full story]                    

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