Skip to main content

GMAC Expected to Name Risk Chief

The move comes as the former GM unit struggles with mortgage losses.
  • Author:
  • Publish date:

General Motors'


former finance subsidiary, GMAC, is expected to name a new chief risk officer, according

The Wall Street Journal


The Journal

reported Tuesday that Sam Ramsey, who joined GMAC in September from

Bank of America


as treasurer, will take on an expanded role running its newly created risk management department.

A GM spokeswoman didn't immediately return calls for comment.

The move comes as GMAC is mired in red ink due to heavy losses from its mortgage lending subsidiary, Residential Capital.

Those losses have weighed on GM, which still owns 49% of the company, as well as GMAC's new parent, Cerberus Capital Management. GM sold a majority stake in GMAC to the private-equity firm last year to raise cash and preserve its credit ratings.

Ramsay, 49, is one of a pair of Bank of America alumni who have followed the bank's former chief financial officer, Alvaro de Molina, to GMAC. De Molina joined Cerberus in June, having stepped down from Bank of America in a surprise move last December. Cerberus then installed him as GMAC's chief operating officer, a newly created position, in August.

GMAC's recently appointed chief financial officer, Robert Hull, also came from the Charlotte, N.C., financial services giant.

ResCap's recent troubles have been a black eye for GM, since the automaker was running the finance company when many of its troubled loans were made with lending practices that are now the subject of intense public scrutiny.

ResCap was one factor in the automaker's giant third-quarter loss that spoiled the veneer of its recently announced labor deal with the United Auto Workers union, pushing its stock price back down well below $30.

The management shakeup at GMAC signals an attempt by Cerberus to overhaul a struggling team at the company, though its longtime CEO, Eric Feldstein, remains in place.

Meanwhile, the problems ailing GMAC are widespread in the financial services sector, including Bank of America. Its stock is down 13% this year amid big writedowns on mortgage-backed securities and other collateralized debt obligations.

Those issues have also walloped other big banks and led to CEO departures at

Merrill Lynch





. Citi also recently installed a new chief risk officer, as did




Shares of GM closed 93 cents, or 3.2%, to $27.68.