GMAC Financial Services expressed some doubt about its ResCap's mortgage unit's future in preliminary third-quarter results that show a substantial net loss at ResCap is likely to be the main contributor to an even larger net loss for the company as a whole.
"Adverse market conditions have made it difficult for ResCap to maintain adequate capital and liquidity levels," GMAC said. "As a result, absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern."
ResCap's estimated $1.9 billion 3Q loss actually represents a relative improvement over last year's $2.26 billion decline, but overall, GMAC's preliminary $2.5 billion 3Q loss this year is greater than last year's $1.6 billion 3Q net loss for the company as whole.
