Detroit Free Press (08/01/08)
Rising foreclosures and a drop in car leasing caused GMAC LLC to post a $2.5 billion loss for the second quarter, versus a profit of $293 million during the same period in 2007. The company's mortgage unit, Residential Capital LLC, recorded a loss of $1.86 billion, up from a loss of $254 million a year ago. GMAC orchestrated a $60 billion debt-refinancing package in June to prevent ResCap from filing bankruptcy, but the lender has been forced to stop writing loans in other countries. According to GMAC CFO Robert Hull, "Consumer credit is absolutely dissolved on the mortgage side and it continues to degrade now in auto."
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