GMAC now eligible for TARP

From Edmunds AutoObserver:

GMAC LLC, the finance arm of General Motors Corp. that also lends money for home mortgages and lines of credit, on Dec. 24 was granted status as a bank holding company by the U.S. Federal Reserve. GMAC's transformation into a bank - and the subsequent qualification for government loans that could run as high as $6.3 billion, according to a report from Bloomberg - is one crucial step towards improving the availability of credit for those attempting to buy GM vehicles. GM was approved for a loan from the TARP funding pool by the Bush Administration, but has in recent weeks said enhancing the availability of credit is an essential factor in jump-starting the industry's dismal sales pace of the past several months.

Now that this has occurred, it appears that GM and Cerberus will have to give up ownership of GMAC due to the stipulations in order to be eligible. While of course short term this is a great solution, is it necessarily a long term news that makes sense? Also, why is it that GM seemingly is going to be able to double dip with getting emergency funds from the government and have an entity now that will also get TARP funding as well? Seems a little too shady to me to be working both ends of the "charity"....

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GMAC now eligible for TARP

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