The Federal Reserves has granted GMAC's request to become a bank holding company in order for them to be able to tap bailout funds. Apparently "emergency conditions" were behind the decision.

Read the full article here.

GMAC is just one of the latest to join the a group of companies converting to bank holding companies in order to tap bailout funds, these most recently include the likes of American Express and CIT.

 
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2 Comments on Fed Grants GMAC's Request

DEC
24
2008
977,173 Points 60 Featured Posts Outside Blog Called Shot Master

Brian:  So tell me... is this move going to be a help to the consumer in some way, of is it just another way this new "bank" can salt away some of the bailout funds for iitself ?  It sounds like you might be up on it enough to give an opinion.

6:27pm • #1
222,333 Points 9 Featured Posts

Karen Anne,

 

My answer would be no, this will be of no benefit to the consumer.  The whole point of the bailout package was to free up the credit markets and so far it hasn't worked.

10:57pm • #2


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