GMAC Inc. may cut losses and the need for capital by sending its home mortgage unit, Residential Capital LLC, into bankruptcy, according to CreditSights Inc.

ResCap lost at least $1 billion per quarter since the third period of 2007 and may breach capital covenants in the current quarter, said a report dated Tuesday from CreditSights, the debt-rating firm. GMAC could keep ResCap's "remaining good assets" and leave behind $11.4 billion of debt in a bankruptcy, said the report, which asked whether it was "time to put ResCap out of its misery."

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