Wednesday, November 5, 2008
The next domino to fall
GMAC warns on mortgage business
GMAC Financial Services has reported an increased loss for the third quarter and warned that its mortgage business, Rescap, may struggle to survive. The firm reported a loss of $2.52bn (£1.56bn), against a $1.6bn deficit a year ago, with Rescap losing $1.91bn. "Absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern," GMAC said.
Posted by jack c @ 08:45 PM (620 views)
3 thoughts on “The next domino to fall”
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little professor says:
Every financial re-re on the “debt free wannabe” board at MSE seems to have a GMAC mortgage. They’ve lent to the dregs of the dregs – their mortgage book must be practically worthless.
jack c says:
little professor – GMAC typically sold their mortgage book on after say 2-3 years (remember B&B were going to buy a tranche) – can’t do that anymore in the current market – they are on borrowed time.
Fjcruiser says:
bust.