GMAC Financial Services Bank Holding Company Application Approved by Federal Reserve
NEW YORK.- GMAC Financial Services today announced that its application to become a bank holding company under the Bank Holding Company Act of 1956, as amended, has been approved by the Board of Governors of the Federal Reserve System. In addition, GMAC Bank has received approval from the Utah Department of Financial Institutions (UDFI) to convert to a state bank.
As a bank holding company, GMAC will have expanded opportunities for funding and access to capital, which will provide increased flexibility and stability.
“Today’s announcement marks a key turning point in GMAC’s history,” said GMAC Chief Executive Officer Alvaro G. de Molina. “As a bank holding company, GMAC will be competitively positioned for the long-term to provide financing to auto and mortgage consumers and businesses such as automotive dealers. GMAC has been a leader in these sectors and it is critically important to our company and the broader economy to resume responsible lending to consumers and businesses.”
GMAC’s previously announced separate private debt exchange offers and cash tender offers were subject to the approval of the bank holding company application. The offers are ongoing and will expire on Dec. 26, 2008 at 11:59 p.m. EST.
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