I know it has been fashionable to predict survival for the most direly wounded firms in the face of significant distress. But I really don't think we can keep up the brave face for GMAC and company.
Finance company GMAC LLC lost $2.52 billion in the third quarter, hurt by the housing slump and vehicle lease writedowns, and said its mortgage unit, one of the nation's largest home loan providers, may not survive.
At what point is it the duty of the board to suggest that liquidation, rather than continued bloodletting, might be the best thing for shareholders, before bankruptcy looms?
GMAC has $2.52 billion loss; ResCap survival at risk [Reuters]