GMAC To Become A Bank

The Feds have allowed the General Motors Corporation to become a banking institution in order to take advantage of the bail out dollars. Yet another company to make such a request. This is in addition to the over 17 Million approved in previous weeks to both GM and Chrysler. As a stipulation the Feds are requiring GM to reduce the amount of stake that they have in the company. The Federal Reserve Board granted GMAC's application on an emergency basis, shortening its normal review process. Emergency approval has become the Fed's routine practice this fall as it offers shelter to companies including investment banks Goldman Sachs and Morgan Stanley and credit card lenders American Express and Discover Financial Services.

Todd
Southern Lending Solutions