WASHINGTON - The Congressional Oversight Panel is criticizing the government's $17.2 billion bailout of GMAC that's come in three separate rounds -- with the latest $3.8 billion infusion on Dec. 30. In doing so, the Treasury Department acquired a 56 percent majority stake in the company, up from its 35.4 percent stake, reported The Detroit News.

GMAC was the only one of the financial institutions subjected to "stress tests" of their financial wherewithal to get more government assistance.

The panel said, "Treasury has not yet articulated a specific and convincing reason to support the company."

It argues that "GMAC was the only institution that was allowed to benefit from post-May improvements in its financial position and in related sectors of the economy."

Treasury must do a better job explaining why, it said.

"In the face of criticism about the merits of saving GMAC, Treasury owes the public a more detailed and convincing explanation not only of its rationale for providing substantial assistance to GMAC, but also of its rationale for treating GMAC differently than other stress-tested institutions," the panel said.

Treasury argues that if it refused to give GMAC more funds "after providing assistance to GM and Chrysler, it would undermine its own investments in the automotive companies."

The panel noted that GMAC recently said it expects to have lost another $5 billion in the fourth quarter of 2009. The panel also said, "Treasury has not indicated whether it will be open to providing additional financing to GMAC in the future."