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EXCLUSIVE-Treasury's Geithner: US to give GMAC substantial aid

Published 05/08/2009, 12:46 PM
Updated 05/08/2009, 12:49 PM

WASHINGTON, May 8 (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Friday that the Obama administration will provide "substantial support" to troubled financial firm GMAC in the form of more capital.

"We're going to provide substantial support to GMAC," Geithner said in an interview with Reuters Television. "It's likely, again, that GMAC will need to take additional capital from the government and we'll be prepared to provide that."

The Treasury and U.S. banking regulators said on Thursday that GMAC needs to raise $11.5 billion to fill a capital hole it could face if the economy were to take a turn for the worse.

(Reporting by David Lawder, Glenn Somerville and Karey Wutkowski; writing by Glenn Somerville)

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