Wow, this is totally pathetic. GMAC, which has enough government money to run ceaseless ads on CNBC for Ally bank, doesn’t have enough money to be transparent with its financials.
Bloomberg (via @retheauditors): GMAC Inc., the auto and mortgage lender that counts the U.S. government as its largest stakeholder, drew criticism from analysts after halting public filings of quarterly results for its Residential Capital LLC unit.
GMAC’s Chief Financial Officer Robert Hull said the Detroit-based lender will stop releasing reports on ResCap’s performance to save money. Hull spoke on GMAC’s third-quarter conference call today after reporting a loss from continuing operations of $671 million.
Hull said the ResCap filing change was a “cost-saving measure, pure and simple,” citing the burden of preparing the filing for a shrinking number of investors. The decision doesn’t imply anything about ResCap’s future, he said. Bondholders will still get access to ResCap financial data through a password- protected Web site, Hull said. Read the whole thing >