GMAC, the bank, looks to government for billions

GMAC finally got its wish. It has been designated a bank under federal rules, the same rules that transformed Goldman Sachs (NYSE: GS) from being an investment house to being a commercial banking operation.

Now, like the other companies with the new designation, it can go, hat in hand, and beseech the Treasury to give it money. According to Reuters, "analysts estimated GMAC might be seeking loans of more than $6 billion." The government could also be asked to back new debt issues from the firm.

GMAC is in both the car loan and mortgage businesses. It may be a stretch to figure how it gets in under the commercial bank rule set up by the Fed. But, there is a more disturbing angle to the story. GMAC is majority owned by Cerberus, just as Chrysler is. The bailing out of Detroit is beginning to look like a bailing out of Cerberus, which by most estimates has over $25 billion under management.

Maybe tax payers should get a controlling ownership of the hedge fund that they are keeping afloat.

Douglas A. McIntyre is an editor at 247wallst.com.