GMAC Bank is part of GMAC Financial Services. GMAC Financial Services was founded in 1919 as a wholly owned subsidiary of General Motors Corp. GMAC Bank was estabblished in 2001. GMAC Bank is an online bank. As of Dec. 31, 2007, GMAC Financial Services had $249 billion in assets and serviced 15 million customers.
On Nov. 30, 2006, GM sold a 51 percent controlling interest in GMAC to a consortium of investors led by Cerberus Capital Management, L.P., a private investment firm, and included Citigroup Inc., Aozora Bank Ltd. and a subsidiary of The PNC Financial Services Group, Inc.
GMAC was established to provide GM dealers with the financing necessary to acquire and maintain vehicle inventories and to provide customers a means by which to finance vehicle purchases. The company’s products and services have since been expanded and now include three primary lines of business: automotive financing, real estate financing and insurance
GMAC Financial Services is a global finance company operating in and servicing North America, South America, Europe and Asia-Pacific. GMAC specializes in automotive finance, real estate finance, insurance, commercial finance and online banking.
GMAC Bank is an online internet based or online only bank. As an online bank, they have low overhead, which allows the bank to pass on the savings via superior interest rates to its customers. GMAC Bank offers an online savings account, money market savings account and a variety of fixed-rate certificates of deposit.
GMAC Bank combines personal banking with the technology of the Internet and ATM access to offer its customers speed, convenience and security. Customers can apply to the bank for products online, enroll for online banking, and gain secure online access their accounts whenever they need it.
As an added convenience, cusimers can easily transfer funds from their local checking account to a flexible, high-yield money market account with a few keystrokes or a phone call. There are no lines and no waiting. GMAC Bank lets customers do their personal banking on their own schedule.
GMAC announced third quarter results with a news release that stated:
GMAC Financial Services reported a 2008 third quarter net loss of $2.5 billion, compared to a net loss of $1.6 billion in the third quarter of 2007. Results were primarily attributable to a significant loss at Residential Capital, LLC (ResCap) as adverse market conditions domestically and internationally continued to affect the mortgage business. GMAC’s automotive finance operation also experienced pressure from lower used vehicle prices and weaker consumer and dealer credit performance. Other items affecting results were realized losses and valuation adjustments on assets held for sale and certain other investment securities as a result of illiquidity in the credit and capital markets. These items were partially offset by profitable results in the insurance businesses.
GMAC’s consolidated cash and cash equivalents were $13.5 billion at Sept. 30, 2008, down modestly from the cash and cash equivalents balance of $14.3 billion at June 30, 2008. Of these total balances, ResCap’s cash and cash equivalents balance was $6.9 billion at quarter-end, up from $6.6 billion at June 30, 2008. The change in consolidated cash is related to debt maturities at GMAC in the quarter, which was partially offset by reduced origination levels.
GMAC Bank assets and deposits continue to grow at a measured rate with total assets of $32.9 billion at quarter-end, which includes $8.5 billion of assets at the auto division and $24.4 billion of assets at the mortgage division. This compares to $31.9 billion at June 30, 2008. Deposits also increased in the third quarter to $17.7 billion at Sept. 30, 2008, compared to $16.9 billion at the end of the second quarter.
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