GMAC has $2.52 billion loss; ResCap survival at risk

[Eugene]

Source: Reuters

GMAC has $2.52 billion loss; ResCap survival at risk
Wed Nov 5, 2008 9:03am EST

NEW YORK (Reuters) - Finance company GMAC
LLC lost $2.52 billion in the third quarter, hurt by
the housing slump and vehicle lease writedowns,
and said its mortgage unit, one of the nation's
largest home loan providers, may not survive.

The fifth straight quarterly loss brought GMAC's
losses since the middle of 2007 to $7.9 billion.

Its mortgage lending unit, Residential Capital
LLC, lost $1.91 billion in the quarter, its eighth
straight quarter in the red, bringing its losses
over that two-year period to $9.1 billion.

-snip-

GMAC said it forgave $197 million of ResCap
obligations in the third quarter, and an additional
sum in October, to ensure ResCap had sufficient
tangible net worth. But ResCap still struggles to
maintain sufficient capital and liquidity, it said.

"Absent economic support from GMAC, substantial
doubt exists regarding ResCap's ability to continue
as a going concern," it said.

-snip-

Read more: http://www.reuters.com/article/ousiv/idUSTRE4A46PB20081105

[screembloodymurder]

1. Not only are they losing money on the cars they can't sell,

now they're losing money on cars they've already sold.