Auto lender GMAC Financial Services announced it expects to endure a fourth-quarter net loss of roughly $5 billion Monday, the result of its ailing mortgage division.
The Detroit-based company believes a $3.8 billion pretax charge to be the culprit for the considerable losses and is moving toward selling some of its mortgage assets after receiving federal aid for the third time.
Last week GMAC received 3.8 billion in Federal Aid, bringing their grand total to a whopping 16.3 billion. The latest installment means government ownership of the company is now at 56 percent.
Keeping GMAC afloat has been a difficult task for the Federal government, but is integral as a result of their financial affiliation to GM and Chrysler dealers.
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