Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

GMAC investors plan for worsening mortgage environment

Staff Reporter 1 minute read

Cerberus Capital Management has expressed concern for the outlook for its US-based subsidiary company GMAC Financial Services, who recently reported a 2007 net loss of US$2.3 billion ($2.6 billion).

Cerberus has a 51 per cent holding interest of GMAC Financial Services.

In a letter to investors, Stephen Feinberg, founder of Cerberus, said the group had developed detailed contingency plans for a worsening environment, Bloomberg News reported yesterday.

“If the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty,” Feinberg wrote.

GMAC said last week that the loss stemmed from continued disruption in the mortgage, housing and capital markets on its residential mortgage business ResCap.

Advertisement
Advertisement

Published: 15-02-08

GMAC investors plan for worsening mortgage environment
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
RBA 2 TA RBA maintains status quo amid calls to consider cuts

The central bank has held the cash rate at its effective lower bo...

CBA 2 CBA announces interest-only lifeline

The bank has become the second major lender to offer customers t...

digital Brokers cite refinancing as key profit driver

The vast majority of brokers believe that refinancing clients is ...

FROM THE WEB