WASHINGTON -- The Treasury Department announced Monday evening it has given GMAC LLC, the financing arm of General Motors Corp., $6 billion in support from the Troubled Asset Relief Program.

Under the agreement, Treasury has purchased $5 billion in senior preferred stock with an 8% dividend from GMAC. In return, GMAC will issue warrants to Treasury in the form of additional preferred equity in an amount equal to 5% of the preferred stock purchase that will pay a 9% dividend if exercised.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.