GMAC bailout

The United States Treasury has unveiled a US$6 billion rescue package for GMAC - General Motors\' troubled car loan arm, which is co-owned by Chrysler\'s owner, Cerberus.



The move is the latest aimed at easing the severity of the economic downturn.



Earlier this month the White House agreed a US$17.4 billion bailout for GM, Chrysler and Ford to help stave off collapse.



Under the terms of the rescue, the US Treasury will buy 5 billion in shares in GMAC, and will increase a loan to one of GMAC\'s co-owners, GM, by an extra US$1 billion.



This increased loan will help fund GM\'s purchase of shares as part of GMAC\'s reorganization as a bank holding company, and comes on top of the bail-out for the car industry.



The Treasury says it is dipping into the US$700 billion financial bailout fund that was approved by Congress in early October to fund this rescue.