GMAC Struggles To Become Bank Holding Co.

Law360, New York (December 11, 2008, 12:00 AM EST) -- Furthering the possibility of a bankruptcy filing in the near future, GMAC Financial Services Inc. has announced that it does not think it can raise enough capital to become a bank holding company that could tap benefits from the government's Troubled Asset Relief Program.

GMAC, the arm of General Motors Corp. that offers mortgage and automotive financing to consumers and businesses, is having trouble persuading debt holders to exchange their investments for new equity stakes in the business in order to achieve the 75 percent participation...
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