GM Finance Arm Converts, Will Tap Bailout

Fed approves GMAC's request to become bank-holding company
By Ambreen Ali,  Newser User
Posted Dec 24, 2008 4:43 PM CST
A GMAC bailout would make it easier for General Motors buyers to get low-interest car loans.   (AP Photo)
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(Newser) – The Federal Reserve today approved a request by General Motors’ financial arm to become a bank-holding company so it can petition for money from the $700 billion bailout pot, the Wall Street Journal reports. GMAC would also have access to direct Fed loans, helping loosen credit and complement the $17.4 billion in emergency loans the White House has extended to GM and Chrysler.