Plan the funeral, GMAC posts $2.52 billion quarterly loss

General Motors Corp.'s financing unit posted a $2.52 billion net loss in third-quarter results released today, with red ink spread across GMAC Financial Services' housing and auto units.

Meanwhile, GMAC's auto finance division lost $294 million, dwarfing a $97 million profit from its insurance business.

GMAC's third-quarter loss compares to a $1.6 billion loss a year ago.

GMAC blamed the loss on a slumping housing market and an auto industry pressured by weak consumer confidence, low used-vehicle prices and dealer credit performance.

"The economic and market conditions created an unrelenting environment for our business and the financial services sector overall," said GMAC Chief Executive Officer Alvaro G. de Molina in a written statement. "Clearly, this weighed heavily on financial results in the third quarter."

GMAC is currently an industrial bank, which isn't eligible for a capital infusion from the Treasury.

Order the flowers and plan the funeral, GMAC will be bankrupt before long.