GM's Lending Arm Files Paperwork to Become a Bank (to get access to Paulson's purse)

[Bozita]

Source: WaPo

GM's Lending Arm Files Paperwork to Become a Bank

By Kendra Marr
Washington Post Staff Writer
Thursday, November 20, 2008; 10:34 AM


General Motor's financial arm, GMAC Financial Services, applied to become a bank holding company today, a move that could allow it to grab a piece of the Treasury Department's $700 billion rescue package and give it access to the Federal Reserve's discount window to receive emergency loans.

As a bank holding company, the cash-strapped lender would have "increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses," according to a statement the company issued today.

In addition to the access to the $700 billion rescue plan, becoming a bank holding company could more immediately help GMAC by giving the company access to the Fed's discount window for low-interest, short-term emergency loans.

Under its application, now under review by the Federal Reserve Board of Governors, GMAC Bank would become a Utah charted Federal Reserve member bank.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/11/20/AR2008112001459.html

[liberal N proud]

1. It worked for American Express

[Baby Snooks]

4. It sure did...

And I bet how much American Express gets is never revealed. And where is Congress in all of this? Our Republicrat Congress led by those two fine upstanding Republicrats Nancy Pelosi and Harry Reid.

Don't count on democracy returning any time soon. Congress apparently likes oligarchy. Makes you wonder how much money has passed under Nancy Pelosi's table the past two years.

[Demeter]

11. NICE Dig AboutThat F'ing Table!

If China WAnts to buy American, we have a GREAT Congress at very reasonable prices....

[Bozita]

2. On Charlie Rose last night, David Cole said that 90% of new car sales require loans and the banks

... are NOT interested in making car loans.

I think GM's got the right idea now.

[DS1]

8. Mine would be if I could afford a down payment big enough

to not completely screw me with interest

[Demeter]

3. Thing Is, It Is't Paulson's Purse, It's the Taxpayers' Pockets

and pigg banks and retirement funds, and so forth.

[pjt7]

5. Cerberus owns GMAC

& they are a GOP power-house. Dan Quayle is on their board, Rumsfield is heavily connected.. & their Chairman is John Snow the Treasury Sec before Paulson.

IT'S ANOTHER ROBBERY IN BROAD DAYLIGHT.

[WriteDown]

6. They own 51%.....

the other 49% is owned by GM.

[Baby Snooks]

7. No, no, no...

It's not a robbery. It's an infusion of cash into the markets to bolster the economy. The economy of the wealthy that is. The rich get richer, the poor get poorer. And the middle-class pays for it all.

[Oerdin]

9. Let's face it.

The big 3 provide a lot more real high paying jobs then fat cats on Wall St who move pieces of paper back and forth between one house of cards to another. We give $700 billion to Wall St but not a penny to help save 3 million well paying union jobs doing actual industrial work in America? How did we become so stupid?

[benld74]

10. My lawyer filed my papers last night!(NT)

[sarcasmo]

12. They won't need to show congress a business plan this way.