GMAC Financial Services my get a third cash infusion from the US federal government.

An Obama administration official last night told Reuters the US Treasury was in talks with the finance form but declined to say how much additional money was under discussion for GMAC, which already has received US$12.5bn of taxpayer funds. The Wall Street Journal had said the government might have to inject another $2.8bn to $5.6bn into the Detroit-based traditional lender to GM dealers and customers which is also taking over the auto loan business of Chrysler.

GMAC was one of 19 banks that underwent government "stress tests" earlier this year, Reuters noted. The tests aimed to assess whether banks would need more capital if a downturn continued through 2010. Ten of the banks, including GMAC, were found to need capital immediately but others were able to raise it on their own.

"GMAC is the only one of the banks that went through the stress test to need additional government capital," Treasury spokesman Andrew Williams told the news agency. "All other institutions were able to raise any necessary capital from investors and several of these firms have already paid back the taxpayer."

The stress test results issued in May showed that GMAC needed to raise $11.5bn of new capital and it was widely speculated at the time that because it had few obvious ways to raise money it on its own, GMAC might have to come back to the government.

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