An application by General Motors to move into banking by setting up a federal thrift was approved Thursday by U.S. regulators. The world’s largest automaker already had a solid presence in financial services through General Motors Acceptance Corp.’s auto-lending and home loan unit GMAC Mortgage Corp.
Its new foray into banking will allow GM to offer a broad range of consumer banking products including checking and savings accounts, certificates of deposit and ATM machines. The new institution will be called GMAC Bank, based in Wilmington, Del. GMAC mortgage will become a subsidiary of the thrift.
The bank will initially conduct business through the subsidiary, currently serving 1.6 million households.
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