Bailout Panel Discusses Funding Needs of US Carmakers
16 Januar 2009 - 8:53PM
Dow Jones News
A panel overseeing the Wall Street bailout discussed the funding
needs of car companies and timing of asset purchases in recent
meetings.
The Treasury Department on Friday released the minutes of a
meeting Dec. 19, 2008, of the Financial Stability Oversight Board
and a meeting on Jan. 8.
The board, chaired by Federal Reserve Chairman Ben Bernanke,
oversees the Troubled Assets Relief Program. TARP is part of the
$700 billion plan to bail out Wall Street.
Some of the money has been pledged to the troubled car
companies.
At the December meeting, Treasury officials gave an overview of
the principal terms and conditions of the $13.4 billion loan that
would be provided to General Motors Corp. (GM) and the $4 billion
loan that would be provided to Chrysler LLC under the TARP.
The Jan. 8 meeting minutes showed members talked about the
objectives, structure and timing of TARP's purchase of $5 billion
in senior preferred equity with an 8% dividend from GMAC and an
additional loan of up to $1 billion to GM in support of GMAC's
reorganization as a bank holding company. GMAC is GM's financing
arm.
"Members and officials also reviewed the collateral for the loan
of up to $1 billion to GM," the minutes showed.
The January meeting minutes showed members considered potential
future liquidity and funding needs of auto-related companies and
ways TARP resources could be best used.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249;
jeff.bater@dowjones.com
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