GMAC-RFC, the high-risk mortgage lender which sold mortgages to Bradford & Bingley, will merge with GMAC's European operations and become an asset manager.
GMAC’s businesses in the UK and Europe will form an international asset management company, with no new home loans likely in the foreseeable future. Around 130 jobs will go as part of the merger, but Simon Knight will remain as chief executive of the new firm. Knight said the firm still wishes to lend in the UK market, but must change its priorities to deal with the current market situation. Last week, GMAC-RFC renegotiated the conditions of an agreement with Bradford & Bingley. However, the new arrangement was not enough to save Bradford & Bingley, which was nationalised and sold off o...
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