GMAC going to be allowed to qualify as a bank.

Why that is important is the focus of this article because as it points out it will let GMAC have access to millions of dollars it would not be able to access if it were not considered to be a bank. Should that be allowed to happen appears to be a moot point if GMAC restructures some of their debt:

While GMAC can become a bank holding company, bond holders still need to agree to a restructuring of $38 billion in debt for it to happen. The deadline for the debt restructuring is Friday. GMAC has previously extended the deadline and sweetened the terms to try and win over bondholders. According to The Wall Street Journal, Pacific Investment Management Co., or PIMCO, hasn’t signed on to the restructuring. Whether the government’s move will change PIMCO’s mind is not clear, according to the paper.

By becoming a bank holding company GMAC will get access to the Fed’s discount window, which gives short-term loans and will be able to issue debt guaranteed by the Federal Deposit Insurance Corp. GMAC is one of the country’s largest suppliers of auto loans but also provides home mortgages through its Residential Capital unit.

The Fed’s approval did come with several conditions. For instance GM, which owns 49% of GMAC and Cerberus, which holds a 51% stake, will have to reduce their positions and hand over board seats. A new board will be chosen by the old board and approved by the Treasury Department.

Why this is so important to GM is because GMAC provides 70% to 80% of GM’s dealers with financing so there's the dual profit aspect as well as making it easier for GM dealerships to be able to get people into a car loan.