A new watchdog report says the Treasury Department sank billions into auto finance giant GMAC without an exit strategy or proof the company was viable — a decision that could cost taxpayers $6.3 billion.
The report is to be released Thursday by the Congressional Oversight Panel overseeing the $700 billion financial bailout that Congress passed in October 2008.
The government said the $17.2 billion GMAC bailout was a necessary step to save troubled automakers General Motors and Chrysler. GMAC provides critical financing to auto dealers, who borrow to finance their fleets until the cars can be sold to consumers.
Yet GMAC faced far fewer conditions than the bailed-out automakers, the report says.
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