GMAC says "we're a bank now, give us bailout money"
Posted by
Brian (aka trav007)
Nov 20 '08, 09:31
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GM's Lending Arm Files Paperwork to Become a Bank
By Kendra Marr
Washington Post Staff Writer
Thursday, November 20, 2008; 10:34 AM
General Motor's financial arm, GMAC Financial Services, applied to become a bank holding company today, a move that could allow it to grab a piece of the Treasury Department's $700 billion rescue package and give it access to the Federal Reserve's discount window to receive emergency loans.
As a bank holding company, the cash-strapped lender would have "increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses," according to a statement the company issued today.
In addition to the access to the $700 billion rescue plan, becoming a bank holding company could more immediately help GMAC by giving the company access to the Fed's discount window for low-interest, short-term emergency loans.
Under its application, now under review by the Federal Reserve Board of Governors, GMAC Bank would become a Utah charted Federal Reserve member bank.
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