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GMAC Inc. is expected to get more federal money so it can meet government requirements in case the economy softens, the Federal Reserve indicated Monday.
The bank holding company, which provides financing for General Motors and Chrysler vehicles and dealerships, is in negotiations with the U.S. Treasury to get additional money from the $700-billion TARP fund.
GMAC is the only one of 10 banks -- which were deemed earlier this year in need of raising more money or improving the quality of their capital to withstand worse-than-expected financial conditions -- to have failed in increasing their capital enough to "meet or exceed their required capital buffers," according to a Federal Reserve Board statement.
"The one exception, GMAC, is expected to meet its remaining buffer need by accessing the TARP Automotive Industry Financing Program, and is in discussions with the U.S. Treasury on the structure of its investment," the statement said.
Late last month, it was first reported that GMAC was seeking a third bite of federal bailout money.
The financial services company has already received $12.5 billion in government help and is reportedly seeking up to $5.6 billion more in loans.
Last week, GMAC reported a third-quarter net loss of $767 million compared with a $2.5-billion loss during the third quarter of 2008.