GMAC Has Filed As A Bank Holding Company

We see today that GMAC, the former exclusive financial arm of General Motors Corporation (GM) which is now only 49% owned by the beleagured automaker, has filed as a bank holding company. This would allow GMAC access to the Federal Treasury’s $700 billion Troubled Asset Relief Program.

This news comes as no surprise to Zacks senior financial analyst Neena Mishra, who just this past Tuesday posted a blog on Zacks entitled “Biz Redrawn for Treasury Access.” In it, she had this quote: “We should not be surprised if the big three automakers convert themselves into bank holding companies to get a piece of the pie.” Prophetic perhaps, but also common sense.

With the economy so cash-strapped, it’s pretty much a force of nature that institutions would try to hitch their cart to the quarter-trillion-dollar gravy train. Certainly we will keep abreast of further developments in this regard, but the real news for investors will be when all this slush turns into traction for someone.

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