GMAC set to post $5bn loss

BORROWERS unable to pay home loans have left car and home finance company GMAC Financial Services facing a fourth quarter loss of about $5bn (£3.12bn).

GMAC, which has 15m customers worldwide, said yesterday the expected deficit would be due largely to charges related to its bid to write down or sell risky mortgage assets.

The group, one of the largest car loan providers in the US, recently got a $3.8bn cash injection from the US government, the latest in a series of bailouts as the lender has struggled to recover from the financial crisis.