New York - GMAC Financial Services, the former financing arm of ailing auto giant General Motors Corp, will convert to a bank holding company in an attempt to gain funds from the US government's 700-billion-dollar financial rescue package, the company said Thursday. GMAC, which is still 49-per-cent owned by GM, has applied for bank holding status with the US Federal Reserve and also contacted the US Treasury for access to the bail-out funds.
The company did not say how much money it is looking for as the auto industry battles to survive the financial crisis engulfing the industry and wider economy.
The government has said the 700-billion-dollar rescue is reserved for financial institutions and has already invested more than 150 billion dollars in 23 banks to help stabilize the financial system.
GM has made a joint plea with Ford Motor Co and Chrysler LLC for 25 billion dollars from the bail-out package, but has so far been denied. The three companies' chief executives testified before a skeptical Congress on Tuesday and Wednesday.
Revenues of automakers and their financiers have plummeted in recent months as banks stopped lending to each other and consumers struggled to gain access to car loans.
