GMAC LLC, the auto and home lender that received a $6 billion government bailout, posted its first profit in six quarters after recording gains from a debt swap that helped avert default.
The company’s fourth-quarter profit of $7.46 billion compares with a loss of $724 million a year earlier, the Detroit- based company said today in a statement. Extinguishing debt in the bond exchange produced an $11.4 billion gain. The auto finance unit swung to a $1.31 billion deficit from a $137 million profit, and home lending’s loss widened to $981 million from $921 million a year earlier.
GMAC won permission from the Federal Reserve in December to become a bank and gain access to the Treasury’s industry rescue fund as part of an effort to save General Motors Corp.