On the heels of GMAC Financial LLC’s approval by the Federal Reserve as a bank holding company(InvestmentNews, Dec. 29), the Department of the Treasury announced late yesterday that it will inject $5 billion into the financing arm of General Motors Corp. from the $700 billion Troubled Asset Relief Program.
The Treasury has also agreed to lend up to $1 billion to Detroit-based General Motors in order to allow the ailing U.S automobile giant to support GMAC reorganizing into a bank holding company.
Detroit-based GMAC is the most recent firm to be granted bank holding status, joining the likes of American Express Co. and CIT Group Inc., both of New York.
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