It was a Merry Christmas for GMAC, which learned on Christmas Eve that the Federal Reserve had approved its application to become a bank holding company. That gives GMAC “access to new sources of funding, including a potential infusion of taxpayer dollars from the Treasury Department and loans from the Fed itself,” as the Washington Post explains. Of course, that’s on top of the $13 billion that General Motors itself has been granted as a short-term bailout until a bigger bailout can be arranged.
GMAC isn’t the only company that has suddenly become a “bank holding company” in order to cash in on the $700 billion financial bailout. Late one night in November, American Express was granted the same privilege. Not to mention Morgan Stanley, Goldman Sachs, CIT…
Maybe it’s time for a new version of Tom Paxton’s classic song “I’m Changing My Name to Chrysler,” sung here by Arlo Guthrie: “When they hand a million grand out, I’ll be standing with my hand out.” Of course, there’s already been a new version, “I’m Changing My Name to Fannie Mae,” sung here by Arlo and here by Paxton. Besides the name of the company, they had to make a few other changes in the lyrics, like “When they hand a trillion grand out, I’ll be standing with my hand out.”
So take it away, Tom and Arlo: I’m Changing My Name to Bank Holding Company.