Am I craZy or is this beginning to look like some kind of shell game?

The Treasury Department said Monday that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.

The government will receive preferred shares that pay an 8 percent dividend and warrants to purchase additional shares in return for the money, the department said.

Treasury also said it will lend up to $1 billion to General Motors so that the company can purchase additional equity that GMAC is planning to offer as part of its effort to raise more capital.

[From TPM: News Pages | Talking Points Memo | GMAC receives $5B in bailout funds ]