The Treasury Department announced Monday evening it has given GMAC, the financing arm of General Motors Corp. (GM), $6 billion in support from the Troubled Asset Relief Program (TARP).

Under the agreement, the Treasury has purchased $5 billion in senior preferred stock with an 8% dividend from GMAC. In return, GMAC will issue warrants to the Treasury in the form of additional preferred equity in an amount equal to 5% of the preferred stock purchase that will pay a 9% dividend if exercised.

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