WASHINGTON (Reuters) - The U.S. Federal Reserve said on Wednesday it approved auto and mortgage finance company GMAC LLC's request to become a bank holding company, a move that gives it access to government lending programs.
As part of the agreement, GMAC's owners, General Motors Corp and Cerberus, will have to reduce their stakes to comply with bank holding company regulations.
"In light of the unusual and exigent circumstances affecting the financial markets ... the board has determined that emergency conditions exist that justify expeditious action on this proposal," the Fed said in a statement.
Detroit-based GMAC already has a banking unit that offers certificates of deposit and online savings accounts, but becoming a bank holding company will make it eligible for government support, including guarantees of new debt that it issues. The company could also apply for billions of dollars of capital under the government's $700 billion financial rescue program.
(Reporting by Emily Kaiser; Editing by Neil Stempleman)
