GMAC's future FDIC-backed note issuances will require prior approval

By Angela McDaniels

Tacoma, Wash., June 9 - GMAC LLC said it will need written approval from the Federal Deposit Insurance Corp. before it can issue any additional debt with an FDIC guarantee under the Temporary Liquidity Guarantee Program.

In addition, the FDIC will determine the size of any such issuances, according to an 8-K filing with the Securities and Exchange Commission.

GMAC received notice of the change from the FDIC on Thursday, and it has no impact on GMAC's recent issuance of $4.5 billion of FDIC-guaranteed three-year notes.

According to GMAC, the FDIC said it will phase in the company's access to the Temporary Liquidity Guarantee Program and will require certain information from wholly owned subsidiary Ally Bank each time GMAC seeks to make an issuance under the program, including:

• A list of Ally Bank's deposit products;

• Ally Bank's ranking among the top 10 deposit-rate payers and the methodology used to determine its ranking each week during any period in which debt issued by Ally Bank or GMAC under the program is outstanding;

• The number of basis points the interest rate paid on certificates of deposit and other deposit products exceeds the average rates for such products listed on Bankrate.com.

GMAC is an auto, commercial and real estate financing company based in Detroit.

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