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GMAC is like a bank after all


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WASHINGTON – General Motors' chances of survival improved Wednesday after its financing arm became eligible to tap into federal bailout funds.

The Federal Reserve approved GMAC Financial Services' request to become a bank holding company, allowing it to apply for a portion of the $700 billion bailout fund and get emergency loans directly from the Fed. Analysts had speculated that without financial help, GMAC would have had to file for bankruptcy protection or shut down, dealing a serious blow to GM's own chances for survival. The Fed cited "emergency conditions" in justifying its decision.

[article]

GMAC is owned jointly by GM (49%) and Cerberus Capital Management (51%), the company that owns Chrysler.

Bruce

2023 Cadillac CT4-V Blackwing

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