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  • Moody’s Investors Service cuts its rating on GMAC because of expectations the company will have to use capital to support its Residential Capital home-lending unit, reports Reuters. Mark Wasden, Moody’s analyst, said in a statement that GMAC has no room to support ResCap without compromising its rating profile. The one-notch cut brought GMAC’s rating three steps below investment grade, to “Ba3” from “Ba2.” Moody’s did not cut its rating on the ResCap unit but the rating agency is maintaining a negative outlook on both the unit and on GMAC.
  • Citigroup named Mickey Bhatia, previously global head of correlation trading, as head of the portfolio and exotic credit derivatives group, and reorganized its structured credit group.
  • Ibis Management's maiden hedge fund, a U.S. long/short equity strategy, has returned 8.6% year-to-date through Nov. 30, primarily due to its short subprime bets.
  • Steve Sterling, formerly the head of high-yield capital markets and loan sales at Bear Stearns, is set to join The Carlyle Group as a managing director and head of research for the U.S. leveraged finance group Jan. 15.
  • Tonu Pekk, financial institutions and principal banker at the European Bank for Reconstruction and Development, will leave the firm after three years tomorrow.
  • Standard & Poor’s today slashed ACA Capital Holding’s rating to CCC from A and placed FGIC on credit watch negative.
  • Citigroup in New York has reorganized its structured credit group and named Carey Lathrop, Jeff Perlowitz and Mark Tsesarsky as co-heads in charge of different businesses lines.
  • Citigroup today cut a significant portion of its structured credit group, including managing directors Darius Grant in asset-backed securities collateralized debt obligations and Shalabh Mehrish on the CDO syndicate desk.
  • Fieldstone Capital, a division of broker-dealer Fieldstone Services, is hiring salesmen.