-GM Bailout- » Cerberus http://www.gmbailout.com Frank discussion on the crisis facing the automotive industry Mon, 27 Apr 2009 22:12:21 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 GMAC Approved as Bank, Can Receive Bailout for Financial Sector http://www.gmbailout.com/2008/12/25/gmac-approved-as-bank-can-receive-bailout-for-financial-sector/ http://www.gmbailout.com/2008/12/25/gmac-approved-as-bank-can-receive-bailout-for-financial-sector/#comments Thu, 25 Dec 2008 02:21:57 +0000 admin http://www.gmbailout.com/?p=44 The Federal Reserve approved GMAC as a bank holding company on Christmas Eve, allowing GMAC, GM’s financial arm, to tap into federal rescue funds for financial services and further shore up GM’s bank balance.

GMAC provides about 75% of financing for GM dealerships and has been frozen out of the credit markets since taking a $7 billion loss earlier this fall.

GM owned most of GMAC until last year, when it sold the majority stake to a private equity firm led by Cerberus. As part of today’s deal, GM will reduce its holdings in GMAC to less than 10% of total shares.

GMAC’s application was approved despite not meeting capital requirements when it applied in November.

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