Originally Posted by Double Dog
GM unloaded the finance arm to reduce their exposure to sub-prime mortgages. I have my home financed throught their mortgage division. They are making money off me!
No they didn't. GMAC was making GM's profit, but they couldn't develop anything because they had a junk credit rating over their ties to GM. When they sold a controlling portion, GMAC's credit went up, and they were ultimately expected to be even more profitable resulting from the prospective growth.