GMAC Questions ResCap’s Continued Survival

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GMAC Financial Services reported a net loss of $2.5 billion in the third quarter of 2008, compared to a net loss of $1.6 billion in the third quarter of 2007. Results were primarily attributable to a significant loss at Residential Capital LLC (ResCap).

Adverse market conditions have made it difficult for ResCap to maintain adequate capital and liquidity levels. As a result, without additional economic support from GMAC, substantial doubt exists regarding ResCap's ability to survive, the company says.

Source: GMAC

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