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Dodd Believes There Will Be Government Cash Infusion To GMAC

By Corey Boles, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- A top Senate Democrat said Wednesday he has been informed by Treasury officials that GMAC Financial Services would receive a third infusion of taxpayer capital since the financial market collapse last year.

Senate Banking Committee Chairman Christopher Dodd, (D., Conn.,) said that he understood the company would receive between $2 billion and $5 billion in fresh taxpayer funds, but that Treasury officials had assured him it would be the last time the company returned to the well for more public cash.

"There will be an infusion, I'm told, beyond what they've already seen," Dodd said. "But I've also been assured by the administration that this is the last of it."

The Wall Street Journal reported last week that the company was in talks with Treasury for a third dollop of taxpayer cash.

The firm has so far received $12.5 billion since December 2008.

"By keeping this moving forward, I hope this will capture the investments we've already made," Dodd said.

Friday, several senior Republican members of the Senate Banking Committee said they were completely opposed to any new taxpayer infusion of cash to the company.

Dodd said that the privately held company had struggled to raise cash from the capital markets as other publicly traded financial firms have.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com

  (END) Dow Jones Newswires
  11-04-091625ET
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