Good news: Treasury tacks another $6 billion onto auto bailout

Using financial markets rescue funds, Treasury will purchase $5 billion in senior preferred equity from GMAC LLC, and up to $1 billion more will be lent to GM itself so the automaker can participate in a rights offering at GMAC, which has wanted to reorganize itself as a bank holding company…

“This will restore liquidity in the auto market and help Americans purchase a car,” said Steve Bartlett, President and CEO of the Washington-based Financial Services Roundtable. “This, combined with the deal announced with automakers, will strengthen the entire auto market from manufacturing all the way to the consumer’s driveway.”