GMAC Now "A Bank"

Laugh? or Cry Harder?

General Motors Corp., days from receiving its first installment of at least $9.4 billion in U.S. aid, won another victory with the Federal Reserve’s approval of lender GMAC LLC’s bid to become a bank holding company.

GMAC’s shift to a bank eases the threat of a default that threatened to dry up credit for GM dealers who used the company to finance about three-quarters of their inventory. GMAC also handled loans for about 35 percent of GM’s 2007 retail buyers.

The implication is that the GM bailout money is NOT the same as the bailout money which will be extended to GMAC.

Other stories report that GM and Cerberus (both major shareholders in GMAC) will be required to substantially reduce their equity interests in GMAC "Bank." Fine and good.

But are YOU going to deposit money in the GMAC "Bank"??