GMAC LLC has won approval from the Federal Reserve today to become a bank holding company. After General Motors and Cerberus agreed to cut their stakes in the company, GMAC now has access to government lending programs, reports Automotive News.
GM has reduced its stake from 49 percent to no more than 10 percent, while Cerberus, who owns 51 percent, will distribute equity interests to investors getting no more than 14.9 percent of voting shares in GMAC.
“GMAC believes becoming a bank holding company is the best long-term solution to provide automotive and mortgage financing to consumers and businesses, including auto dealers,” spokeswoman Gina Proia said in a statement.
Cerberus had no comment.