Capping off a dismal 2009, GMAC CEO Michael A. Carpenter revealed the finance firm is expected to post a $5 billion loss for the fourth quarter of last year. Carpenter blamed the loss on the company’s money losing Residential Capital mortgage unit. Including the $5 billion fourth quarter loss, GMAC posted more than a $10 billion net in 2009. GMAC is currently being propped up by $17.2 billion in federal aid.
Report: GMAC lost $5B during Q4 of 2009
Plus..
The federal government said Wednesday that it will take majority control of troubled auto lender GMAC and provide an additional $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to staunch its losses. The Treasury Department has said for months that GMAC would need more federal money, but the decision to increase the government's ownership stake came as a surprise, cutting against the grain of the Obama administration's recent efforts to wind down its bailout of large banks.
washingtonpost.com
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