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GM may ask for direct loan from the Federal Reserve

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Under the gun, GM appears likely to ask for a loan from the Federal Reserve. Barron's is reporting that the auto maker's expected request came from a couple of people with first-hand knowledge of the situation. As expected, neither GM or the Fed will discuss this matter.

The General, according to one source, has been considering asking the Fed for a loan since last month, when it drew down $3.5 billion of a conventional $4.5 billion secured revolving credit line.  How much the automaker would seek is unknown, but it needs $5 billion to meet its goal of completing a $15 billion liquidity program.

Full story here.

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2 Comments

ateixeira says:

11:01 AM, 10/14/08

It's the early 80s again, except this time GM may buy Chrysler first, then beg for money.

jdizon says:

02:30 AM, 04/ 6/09

Thanks for the information. Any other posts or blogs you can recommend on loans or direct loans? Great post. Gives me what I have been looking for.

Quick Cash Loans

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