Cerberus may give up GMAC control to get bank status: Bloomberg

NEW YORK (Reuters) - Cerberus Capital Management may pass its control of GMAC LLC to its investors so the financing unit can convert to a bank and get access to government funds, Bloomberg reported on Thursday, citing three people familiar with the matter.

A source familiar with private equity firm Cerberus said no determination had been made about the structure of GMAC.

Bloomberg reported that Cerberus is mulling a plan to distribute its 51 percent stake in embattled GMAC among investors in its funds.

By forfeiting its control of the company, Cerberus may help GMAC become a bank and get funding from the U.S. Treasury and Federal Reserve without requiring Cerberus to submit to banking regulations, Bloomberg said.

A Cerberus spokesman declined comment.

Cerberus led a group in 2006 that paid General Motors Corp $7.4 billion in cash for 51 percent of Detroit-based GMAC. GM owns the other 49 percent.

(Reporting by Elinor Comlay)