Cerberus Warns

It ain't just Doyle and the Leggies.

After sketching the grim state of affairs with references to the “liquidity crisis,” a “market panic” and a “widespread decline across all sectors,” Cerberus boss Steve Feinberg... and his co-founder William Richter addressed its highest-profile deals. The bigger concern of the two: GMAC, the former lending arm of General Motors that finances billions of dollars worth of homes and cars.

“We have significant concerns,” they write in this nine-page letter to their investors, which was first reported on by Bloomberg. “If the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty.”

Cerberus also holds a few companies in Wisconsin, and Chrysler.

HT: Calculated Risk