Government moves closer to more aid for GMAC

The government was moving ahead on a fresh multibillion dollar cash infusion to stabilize auto financing company GMAC Financial Services, according to a person with knowledge of the matter. GMAC, based in Detroit, is instrumental to the operations of automakers General Motors Co. and Chrysler Group LLC. It has already received $12.5 billion in taxpayer money and is 35% owned by the federal government. The person, who spoke on condition of anonymity because discussions weren’t complete, says the new infusion would be in the range of another $3 billion. That would fall short of the roughly $6 billion the government had earlier thought GMAC would need to stabilize the company. An announcement of the injection could come late today or on Thursday, the source says. After the government conducted “stress tests” on financial institutions earlier this year, it demanded that GMAC raise an $11.5 billion capital cushion to help it weather further economic decline. GMAC was unable to raise the funds privately.