GMAC, the financial arm of General Motors Corp., has taken steps to switch from operating as an industrial bank to a becoming a bank holding company. Doing so would allow for increased access to the Troubled Asset Relief Program.
In addition to originating auto loans, GMAC also originated mortgages, and losses have hurt the company's financial performance lately, notes a Los Angeles Times article. GMAC has responded by tightening lending practices.
Source: Los Angeles Times