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BANKING: GMAC still lagging in capital, Fed says

THE OLYMPIAN | • Published November 10, 2009

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The Federal Reserve said Monday that GMAC is the only one of 19 stress-tested banks that needs more capital to withstand future losses. GMAC, a crucial player in the U.S. auto industry, has been unable to raise the $11.5 billion regulators said it needed. The Fed says the finance company is expected to close the gap with more money from the $700 billion financial bailout.

GMAC, already the recipient of $12.5 billion in taxpayer infusions, is negotiating with regulators over how much more it will receive.

The Associated Press