Subprime mortgage crisis hits home… again

$800 million. That’s how close Residential Capital is to bankruptcy, according to the Financial Times. The Minnesota-based arm of GMAC says its lenders are requiring it to keep $5.4 billion in value. Its latest filing with the SEC shows a value of $6.2 billion.

“GM/Cerberus may elect to put ResCap into bankruptcy given its exposure to homebuilders, and recoveries given default may be even lower than implied by current distressed levels,” analyst Kathleen Shanley wrote today.

In English, that means she’s betting General Motors won’t pony up the money to keep the firm liquid.

The company has already confirmed one-quarter of the company’s 3,000 jobs will be cut. The rest are now at stake.

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