Remember GMAC? GM sold 51% of the finance unit when the carmaking operations seemed to be dragging down its credit ratings and pushing up its funding costs. Now GMAC s US mortgage exposures are weighing it down. Any enthusiasts for separating ILFC from AIG should take note.
First Friends Provident, now Standard Life, have lost out in the auction for the UK insurer. Failure has damaged both. Sure, they were never going to find rival bidder Hugh Osmond a pushover. But in biting off more than they could chew, they appear to be following a wellworn script for former mutuals.