GM: ResCap May Ram Auto Finance

General Motors' (GM Quote) finance chief sees the potential for weakness at GMAC's mortgage unit to spread to auto finance in 2008.

GM CFO Fritz Henderson told Wall Street analysts at a dinner on Thursday that if GMAC's credit ratings take a hit from the heavy losses it's suffering its mortgage division, then the core auto finance business could have trouble maintaining profit margins, according to a report published Friday by Bear Stearns analyst Peter Nesvold.

"We're not there yet," said Henderson, according to Nesvold. ...