GMAC, the financing division of GMC, posted a $2.48 billion dollar loss for the quarter driven by losses tied to its ResCap residential mortgage group and auto lease write downs. ResCap which has been posting massive losses since the credit crunch began, lost $1.86 billion tied to more mortgage misery. Private equity firm Cerberus Capital owns 51% of ResCap.From … [Read more...] about GMAC posts $2.5 billion quarterly loss
Archives for July 2008
The Federal Reserve announced changes to its emergency lending window for financial institutions today. The changes extend the repayment period for the loans and the duration of the program among others. The lending window allows banks to borrow from the Fed for short periods of time while putting up securities (such as mortgage backed securities, etc.) as collateral for the … [Read more...] about Fed extends emergency lending window
I'd be on the lookout for more of these types of suits in the future as real estate sales and their role in the bubble come more in to foucs. We've put a lot of time and energy in on the mortgage side of the game; but there is plenty of blame/shame to heap on Realtors who pushed borrowers, sellers and loan originators in to uncomfortable situations.RE/Max East-West is … [Read more...] about RE/Max East-West slapped with real estate sales discrimination suit
If this graph (from the Big Picture) doesn't say it all keep reading...The home prices tracked by the S&P Case-Shiller index continue to drop with all 20 cities tracked in the study posting losses for May (the most recent month tracked).From S&P: Data through May 2008, released today by Standard & Poor's for its S&P/Case-Shiller(1) Home Price Indices, the … [Read more...] about Case-Shiller shows no end to home price declines
The Massachusetts Educational Financing Authority is unable to grant loans to college students this year as it is unable to secure financing due to the condition of the capital markets. More than 40,000 college students will be locked out of financing for their college education due to the beating taken on Wall Street.This is where it gets really unfortunate folks. … [Read more...] about Think the credit crunch is over? Ask a college student.