Merrill 3Q loss widens on mortgage-related charges (AP)

AP - Merrill Lynch says it third-quarter loss widened as it took more than $12 billion in charges from the sale of mortgage-related investments and fallout from the continued credit crisis. Read more…

GMAC to cut 5,000 jobs at ResCap mortgage unit (Reuters)

03.09.2008 20:40 Finance

NEW YORK (Reuters) - GMAC LLC said on Wednesday it plans to cut 5,000 jobs at its Residential Capital LLC mortgage unit, or 60 percent of that work force, and shut its 200 GMAC Mortgage retail offices as it combats weak credit and housing markets.

GMAC also plans to stop offering home loans through its Homecomings wholesale brokerage channel, and is evaluating strategic alternatives for its GMAC Home Services and noncore mortgage servicing businesses.

ResCap expects to take a charge of $90 million to $120 million related to 3,000 of the job cuts. It sees an additional charge for the other job cuts.

A group led by private equity firm Cerberus Capital Management LP (CBS.UL) controls GMAC after buying a 51 percent stake from General Motors Corp (GM.N) in 2006. The automaker owns the remaining 49 percent.

(Reporting by Jonathan Stempel; editing by Jeffrey Benkoe)

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