The government already has a huge stake in our economy, but soon it will be even larger.
The Treasury announced Wednesday that they will be giving GMAC 3.8 billion dollars to help bailout of the company. The Wall Street Journal reports:
The additional aid brings the total U.S. investment into $16.3 billion and raises the government’s ownership interest to 56% from the current 35%. In exchange for committing more funds, the Treasury will appoint a total of four directors to the company’s board instead of two as previously planned. The company will also continue to be subject to pay limits set by U.S. pay czar Kenneth Feinberg. The additional aid is expected to help the firm absorb additional losses associated with mortgages.