GMAC Granted Bank Status as U.S. Seeks to Save GM

GMAC Granted Bank Status as U.S. Seeks to Save GM

www.bloomberg.com

Dec. 24 (Bloomberg) -- GMAC LLC won Federal Reserve approval to become a bank holding company, enabling the auto lender to tap U.S. financial industry bailout programs and help keep General Motors Corp. in business.

The Fed is using emergency powers to grant Detroit-based GMAC’s request because of the “unusual and exigent circumstances affecting the financial markets,” according to a statement from the central bank today. To comply with rules about who can own a bank, GMAC’s majority owner Cerberus Capital Management LP agreed to distribute its stake to its investors and minority owner GM will cede all control.

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Related News Links:
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www.washingtonpost.com

[edit on 24-12-2008 by Aleksander]

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[edit on 24/12/2008 by Mirthful Me]

Well look at that , I guess since they couldn't get a Auto Bailout they got someone on the Fed to grant them Bank status. I'm not going to say let's hope they do the right thing because every other bank that got a handout has pretty much gave us the finger.

So does anyone think they will do the right thing and start loaning consumers the money to buy their cars or are they just going to pocket the cash like every other bank has been doing?

www.bloomberg.com
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[edit on 24/12/2008 by Mirthful Me]