As seen at the Highland Bridge Lunds & Byerly’s: an unexpected GMAC/RFC sighting!
Its primary line of business was purchasing mortgages from originators and bundling them into securities for sale to investors. Ever read Liar’s Poker by Michael Lewis? The book describes how Salomon Brothers created the mortgage bonds, made shitloads of money until scandals destroyed the company. GMAC/RFC might not have created the business, but they joined the party early and also made shitloads of money.
One important aspect to understand about mortgage-backed securities is that mortgages which go into default must be replaced in the security using reserves set aside for just this purpose. The party was over when the subprime mortgage crisis hit as reserves could no longer cover the surge in delinquencies and defaults, leading to bankruptcy, acquisition and finally dissolution.
I worked at GMAC/RFC multiple times – consultant, contractor, employee – and received an excellent education in mortgages and mortgage banking. I also learned how wild-west things were, how traders bought and sold without any legitimate oversight: no one really cared as long as the profits flowed in. One year, a really bad trade made the first week in January was only just offset by an incredible rest of year: aside from that trade, GMAC/RFC had one of its best years ever. The subprime mortgage crisis, however, was just too much to overcome, and many firms much more prestigious than GMAC/RFC collapsed.
I failed to get the elderly man’s attention so I don’t know what even was being sponsored, but the t-shirt reminded me of my time there and friends made, many of whom I am still in contact with. Nevertheless, I haven’t had a GMAC/RFC sighting in a while so caught me off-guard. The t-shirt almost looks new! Ah, if only I looked so good decades later ….
Image Credits
- © 2026 Scott C Sosna, all rights reserved.
