Auto and mortgage finance firm GMAC said yesterday that it had been approved to use the Commercial Paper Funding Facility (CPFF) ,which was created earlier this month and launched on Monday by the Federal Reserve, according to published reports. 

The facility is aimed at easing pressure on the corporate credit marketDetroit-based GMAC, jointly owned by Cerberus Capital Management (51%) and General Motors Corp. (49%), was reportedly granted approval of its application recently.

The Federal Reserve will be setting rates for the CPFF on a daily basis  For today, the Fed announced its rates on three-month commercial paper would be 1.84 %. For ABCP, the rate was set at 3.84 %. Yesterday it was 1.89% and 3.89%, respectively, according to the Federal Reserve Bank of New York Web site.

General Electric Co., which is the country's largest issuer of commercial paper, said it accessed the new short-term funding facility while American Express has also registered for the Fed's program, according to published reports.

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