GMAC Bailout Could Cost Taxpayers $6.3B
Written By Danile Wagner
March 15th, 2010
The Treasury Department sank billions into auto finance giant GMAC Inc. without an exit strategy or proof the company was viable - a decision that could cost taxpayers $6.3 billion, a new watchdog report says. The government said the $17.2 billion bailout was a necessary step to save troubled automakers General Motors and Chrysler. GMAC provides critical financing to auto dealers, who borrow to finance their fleets until the cars can be sold to consumers.