Financial Times FT.com

GMAC approved for bank holding company status

ByJoanna Chung in New York

Published: December 24 2008 22:02 | Last updated: December 24 2008 22:02

GMAC, the ailing consumer lender partly owned by General Motors, was granted regulatory approval on Wednesday to become a bank holding company, giving it access to the US government’s $700bn financial rescue fund and other lending programmes.

In a statement, the US Federal Reserve said: “In light of the unusual and exigent circumstances affecting the financial markets.....the Board has determined that emergency conditions exist that justify expeditious action on this proposal.”

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