From the WSJ:

The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government’s 35.4% stake in the company could increase if existing shares eventually are converted into common equity.

Federal officials also are moving to shore up GMAC’s ability to fund its daily operations, with the Federal Deposit Insurance Corp. telling the company Tuesday the agency will guarantee an additional $2.9 billion in debt, according to people familiar with the discussions. The FDIC guarantee will make it easier for the company to sell debt to investors. The FDIC backed $4.5 billion in GMAC-issued debt earlier this year.

We now make a prediction:  GMAC will be the first of many.  Due to cash flow, several more TBTF banks will come back to the bailout trough over the next 6 months…

Mike Shedlock reports on GMAC’s new plan to save GM.  After all, there’s nothing to lose since GM will likely go kerplunk soon. The strategy? – it’s biblical (see Luke 6:25) – “Lend, expecting nothing in return”:

Here’s some quotes from the article:

NEW YORK/DETROIT (Reuters) – GMAC Financial Services said it will resume making car and truck loans to subprime borrowers and will lower inventory financing costs for cash-strapped auto dealers, part of a series of moves intended to spur sales at General Motors Corp.

The moves announced Wednesday come as the embattled automaker races to restructure and get customers back into its showrooms amid growing risk that it will be pushed into bankruptcy by the Obama administration.

The finance company plans to resume accepting finance applications from car and truck buyers who have credit scores below 620, a line dividing prime borrowers from less creditworthy subprime borrowers. The median U.S. credit score is 723, according to Fair Isaac Corp’s myFICO unit.

GMAC also will cut borrowing costs for some new and used vehicle purchases.

In addition, it eased a variety of fees and payments imposed on dealers, giving them more breathing room to lower both costs and inventory of unsold vehicles.

What the heck, it’s only taxpayer money and it’ll all be over soon. Let’s go out with a bang!