As the Central banks across the world are pumping money into banks and the rest of the economic world watches the bailout, it is no wonder that every entity now wants to be a bank. And why not, you let your investment banking division run amuck, dish out
lofty bonuses, engage in leveraged buyouts and deals with gay abandon; when things sour up, just call for the Central Bank to throw a line (just a few billion dollars...) on the plea of 'public welfare'.
It is no wonder that GMAC (General Motors subsidiary); the haemorraging auto finance arm of the once leading auto manufacturer, wants to morph into a 'bank holding company'. Obviously, seeing how generous the Federal Reserve is with banks, every failing
business would sing -"Call me a Bank.."
By turning itself into a 'bank holding company', GMAC thinks it will be eligible to draw from the $ 250 B kitty laid out by US Treasury Secretary Hank Paulson. Going by the manner in which Central Banks across the globe are opening their treasury to 'release
liquidity' for banks, every failing business wishes to be a bank!
How can you blame them? No other industry has a 'Central authority' that can convert public money to debt or equity and pull you out of the waters.
Taking a line from Martin Luther King - " I am in dire straits, I too have a dream... I wanna be a Bank!"