Further proof that the subprime mortgage fiasco is still with us appeared today as GMAC dropped a bomb. GMAC Financial Services and its Residential Capital subsidiary plan to close all 200 GMAC mortgage retail offices nationwide, and cut the ResCap work force by 5,000 employees, or 60 percent. Workers say the field is already saturated, making it difficult to find another job with the same skill set. Many people expected the layoffs sooner.
ResCap, a large subprime-mortgage lender that lost $4.3 billion last year, will incur a charge expected to range from $90 to $120 million that reflects the 3,000 workforce.
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The Subprime Mortgage Crisis Before, During, and After
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