GMAC Financial Services confirmed it has applied to become a bank as it seeks money from the Treasury Department's $700 billion injection effort and other avenues of cheaper capital in an effort to stabilize its teetering state.

The cash-strapped financier, 49%-owned by General Motors Corp., also announced offers to exchange $38 billion in notes from GMAC and its Residential Capital home-lending business for new securities with the same maturity dates and interest rates. The move would cost GMAC up to $2.5 billion in cash, it said.

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