GMAC Expects to Report $5B Loss for Fourth Quarter
Auto lender GMAC Financial Services said Monday it expects to announce a combined fourth-quarter net loss of about $5 billion, hurt by its struggling mortgage division, reported The Associated Press.
Detroit-based GMAC said a previously disclosed $3.8 billion pretax charge was the main driver of the anticipated losses, and it had taken steps to sell some of its mortgage assets following a third installment of federal aid.
GMAC received $3.8 billion in taxpayer money last week and has received $16.3 billion in total. The move boosted the government's ownership to 56 percent, from 35 percent.
The Obama administration has tried to keep GMAC alive as part of its rescue of automakers General Motors and Chrysler. GMAC provides wholesale financing to thousands of GM and Chrysler dealers.
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