Thursday, October 30, 2008

GMAC As Bank Holding Company

Former Bush Secretary of the Treasury John Snow wants to get in on the action his successor has created. Snow is now chairman of Cerberus which is majority owner of General Motors and Chrysler.

According to WSJ, Snow wants to make GMAC a bank holding company, which will mean that GMAC could receive equity injections from the Treasury Department's capital purchase program and have its debt temporarily guaranteed by the Federal Deposit Insurance Corp.

Further, as a federally chartered bank, it could access the Fed's discount window for inexpensive, short-term emergency loans.

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