GMAC Files For Banking Status In Effort To Access $700 Billion Bailout Package

 GMAC Financial Services, the lender partly owned by General Motors (GM Quote - Cramer on GM - Stock Picks), has asked the Federal Reserve for clearance to become a bank holding company, which would make it eligible for funds under the government's Troubled Asset Relief Program.

Additionally, GMAC asked the Treasury Department to allow it to participate in the Capital Purchase Program created under the Emergency Economic Stabilization Act of 2008, provided it is declared a bank holding company.

As a bank, GMAC said it would "obtain increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses." GMAC, which is majority owned by private equity firm Cerberus, said the change would shore up its capital position.