Citigroup Grants $21 Billion in Funding to GMAC

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GMAC LLC, the lender partly owned by General Motors Corp. that lost more than $1 billion on mortgages, will receive as much as $21.4 billion from Citigroup Inc. to fund auto and home loans.

The financing replaces a $10 billion arrangement dating from August 2006 with New York-based Citigroup, the biggest U.S. bank, according to a federal filing today. GMAC will get access to $14.4 billion and may be granted $7 billion more if certain conditions are met, according to the filing. The funds are for assets tied to U.S. automobiles, mortgages and other items.

Posted by OscarNOW on 6:04 PM. Filed under citigroup, gmac, loans, losses . You can follow any responses to this entry through the RSS 2.0