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Home » Mortgage Accounting Issues Complicate GM’s Efforts To Attract Investors, Might Prompt ResCap Spinoff
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Mortgage Accounting Issues Complicate GM’s Efforts To Attract Investors, Might Prompt ResCap Spinoff

March 31, 2006
Struggling automotive giant General Motors has had to address some accounting and internal control issues related to some mortgage loan transactions at Residential Capital Corp, its residential mortgage subsidiary, complicating the company’s efforts to lure investors into buying a stake in General Motors Acceptance Corp. In fact, the accounting problems might prompt GM to spin off ResCap itself rather than keep it part of the GMAC family, which also provides automobile financing and has…
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