News of the Competition

MADISON, Wis. (11/6/09)

• GMAC Inc.--which is 35% owned by the government--is cutting back on disclosures about its embattled mortgage unit. The finance company said Wednesday it no longer would provide separate quarterly or annual reports for Residential Capital LLC (ResCap). The Securities and Exchange Commission does not require the reports because only 300 investors hold ResCap's $4 billion of debt, analysts said. The change will result in saving a "tremendous" sum of money, said Robert Hull, GMAC chief financial officer, although he did not specify the amount. Several banking industry observers are upset by the move, which follows controversy over GMAC's negative advertising and its online bank's high deposit rates, analysts said (American Banker Nov. 5) ...

• MasterCard Inc. Tuesday reported a third-quarter profit, compared with a loss in the year-ago period. Results in the quarter were aided by cost-cutting measures, a higher volume of transactions processed, and lower litigation settlement charges compared with the year-ago period, analysts said. Third-quarter adjusted earnings per share jumped 41% from last year. The company's gains come despite general negative impacts from a global slowdown in consumer spending and a high worldwide unemployment rate, analysts said (www.rttnews.com Nov. 3) ...

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