U.S. could take 17 years to exit GMAC

Politics: So taxpayers will help to fund GM and their loan department for years to come, wonderful.

CHICAGO (Reuters) – GMAC LLC, which is giving the U.S. Treasury Department a 35.4 percent equity stake, said on Friday it might take 17 years for the government to shed its investment if the auto and mortgage lender were to go public. The timetable suggests that federal involvement in GMAC's affairs could persist long after troubles plaguing the economy and the auto industry end. GMAC has gotten $12.5 billion of government infusions since December, including $7.5 billion on Thursday. The Treasury Department separately said on Thursday it expects to swap a previous $884 million loan it made to General Motors Corp (GM.N) for the 35.4 percent stake in GMAC. It also won the right to appoint two directors to GMAC's board. In a U.S. Securities and Exchange Commission filing, Detroit-based GMAC said that if it were to go public, the Treasury Department would begin to liquidate its stake no later than seven years after an initial public offering.