Residential Capital's Parent Groups to Provide $2.88 Billion in Funding

Chicago Tribune (06/04/08)
Residential Capital LLC (ResCap) has received a capital infusion of $2.88 billion from its parent company, GMAC LLC, and the company that controls GMAC, Cerberus Capital Management LP. The funding comes after the struggling mortgage lender was unable to unload $1.3 billion in assets and suffered six quarterly losses driven by rising foreclosures. Though ResCap's parent groups have provided funding on no less than three occasions, observers say additional funding might be necessary, and bankruptcy might be on the horizon.