GMAC seeks bank holding company status

NEW YORK, Nov. 20 (UPI) -- GMAC Financial Services said Thursday it had applied to the U.S. Federal Reserve for bank holding company status, a step toward securing federal aid.

The auto and home financing company said it had also submitted an application to the U.S. Treasury to participate in the Capital Purchase Program set up in the $700 billion financial firm bailout program known as the Emergency Economic Stabilization Act.

"As a bank holding company, GMAC would obtain increased flexibility and stability," the company said in a statement.

Cerberus Capital Management LP, owners of Chrysler LLC, owns 51 percent of GMAC, while General Motors Corp. owns 49 percent.

Sources also said GMAC was also considering moving its headquarters to Charlotte, N.C., The Charlotte Observer said Thursday.

The move, if confirmed, could provide a rebound for bankers in the area who could be displaced from positions at Wachovia bank, recently purchased by Wells Fargo and Co., the Observer said.