GMAC Financial Services (NYSE: GOM) reported Thursday that the company lost $5 billion in its fiscal fourth quarter as its mortgage operations suffered large losses, according to Associated Press.
GMAC's fourth-quarter loss compares with a profit of $7.5 billion in the same quarter last year.
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Mortgage operations overall lost more than $4 billion during the quarter, and GMAC suffered a $3.3 billion charge related to its efforts to sell the unit.
GMAC is still working to sell its troubled home lending business, ResCap. The company’s current options for the unit are selling it; selling off its bad assets, but keeping the subsidiary; or putting it into bankruptcy.
GMAC's automotive operations made $369 million during the quarter. GMAC is the main lender for the General Motors Co. customers and dealers and recently took on the financing duties for Chrysler Group LLC.
The company said its auto financing business will continue to be its main focus in the future.
In December, GMAC received a $3.8 billion federal bailout, which was the third round of aid that now totals $16.3 billion. With the additional funds, the government's stake in GMAC stands at 56 percent, up from 35 percent.
GMAC's financial troubles caused its board of directors to oust CEO Alvaro de Molina in November. GMAC director Michael A. Carpenter, formerly a board member at CIT Group and a Citigroup executive was named his replacement.
Another bright spot for the company has been its Ally Bank unit. Retail deposits rose to $16.9 billion from $15.9 billion in the third quarter.
For the full year, GMAC lost $10.29 billion. It made $1.87 billion in 2008.
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