The TARP: such stuff as dreams bank holding companies are made on.
GMAC Files Application With Federal Reserve to Become Bank Holding Company
Commences private exchange offers and cash tender offers for $38 billion of certain outstanding GMAC and ResCap debt securities to increase capital
NEW YORK, Nov. 20 /PRNewswire/ — GMAC Financial Services (”GMAC”) today announced that it has submitted an application to the U.S. Federal Reserve Board of Governors for approval to become a bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). GMAC also announced today that it has submitted an application to the U.S. Treasury to participate in the Capital Purchase Program created under the Emergency Economic Stabilization Act of 2008, conditional upon becoming a bank holding company.
Full statement - including details of the debt carve up - here.
GMAC bonds have surged on the news: GMAC’s 6.875 percent notes due in 2011 rose to 50 cents on the dollar, up 11 cents, according to Reuters.
____
