24 December 2008

It's Official: GMAC to Become Bank Holding Company

This is good news for GM, as much of the auto sales decline is due to problems getting auto loans, so the ability of the auto finance company to access both TARP funds and the dozen or so the new Federal Reserve lending programs.

One of the things that must happen now is that Cerberus and GM must both reduce their stakes in GMAC to conform with banking regulations.


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