Losses at GMAC Hurt GM Turnaround Plan

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Just after Cer­berus Cap­i­tal Man­age­ment bought a 51% stake in GMAC from Gen­er­al Motors, the bot­tom began to fall out from under the mort­gage mar­ket. GM had come to count on reli­able prof­it num­bers from GMAC, but in 2007 the auto finance com­pa­ny report­ed a $2.3 bil­lion loss. Even though much of this loss was dri­ven by the mort­gage busi­ness, it does not help GM’s turn­around plans. Cer­berus has opened talks to sell off Res­i­den­tial Cap­i­tal, the mort­gage divi­sion of GMAC.