How much did GMAC's failure to qualify as a bank holding company have to do with the bailout failure

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On Wednesday the 10th GMAC threw in the towel on coming up with enough capital to qualify as a bank holding company. Therefore, GMAC, owned 51% byCerberus and 49% by GM won't qualify for funding from the TARP.

During the hearings, it was indicated that the sucess of the bailout plan was predicated on GMAC also getting TARP funds in addition to the $36 billion that the auto companies were asking for. Otherwise, funding for car buyer's loans, lease programs, and dealer floor plan financing would be unavailable, and they auto industry would still be in big trouble.

This may have figured a lot in the failure of the bailout bill.

However, it has also been announced that Bernard L. Madoff Investment Securities LLC, has perpetrated a $50 billion Ponzi scheme on hedge funds, banks and major investors. This may have also complicated matters. Depending on who Madoff ows money to, and depending on whether someone did credit default swaps on those investments, this may cause another major round of siezing up of the credit markets, necessitating the injection of Treasury and Federal Reserve funds.