Economy Blog » Things Get Ugly At GMAC

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After a big fourth quarter loss, private equity player Cerberus may regret buying a controlling interest in GMAC. The head of Cerberus said in a note to clients picked up by Reuters “… if the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty.” The home lending and auto financing parts of GMAC are likely to face a vicious downturn as the year wears on. What is not clear is what Cerberus will do if its situation is dire. Does it default on its debt? Go…
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