GM funding arm receives $5B in bailout funds

WASHINGTON – The government says it will provide $5 billion to the GMAC Financial Services, the funding arm of General Motors Corp., from the $700 billion bank rescue program.The Treasury Department also says it will lend up to $1 billion to General Motors so that it can participate in a debt for equity swap with GMAC, which is seeking to raise additional capital. The loan is in addition to the financial assistance the government announced Dec. 19 for GM and Chrysler LLC.

Last week, the Federal Reserve approved GMAC’s application to become a bank-holding company, which enabled it to receive money from the financial rescue fund. - AP