Ally says may put mortgage unit Residential Capital (ResCap) in bankruptcy


Ally says may put mortgage unit Residential Capital (ResCap) in bankruptcy

Ally says may put mortgage unit Residential Capital (ResCap) in bankruptcy


Ally Financial Inc, the U.S. government-owned lender, said its mortgage unit could file for bankruptcy, in the company’s most direct statement so far about its plans for the struggling business.

Ally Chief Executive Michael Carpenter said its Residential Capital LLC unit has been examining options that range from “staying the course” to bankruptcy.

“We think that the single most important thing that we can do to preserve and enhance shareholder value is to distance Ally from the mortgage business,” Carpenter said on a conference call with investors after the company posted quarterly earnings.

Sources have told Reuters that bankruptcy was an option for ResCap, possibly as early as mid-May, but the company had previously only hinted at the possibility. An executive said Ally failed a recent test from regulators for soundness in distressed economic situations, known as the Federal Reserve’s “stress test,” in large part because of liabilities linked to the mortgage business.

Ally, which was originally the lending arm of General Motors, said it learned on Wednesday that Chrysler Group LLC was not renewing a preferred lending agreement that will now expire next year, but executives downplayed the importance of that loss on the call.


© 2010-13 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.




Related posts:

  1. PMI Group, “MERS” Shareholder Files Bankruptcy After Regulators Take Over Unit Remember, PMI Group is also a Mortgage electronic Registration System,...
  2. Barney Frank requests hearing on mortgage abuses at Ally Just one day after Attorney General Martha Coakley urged Congress...
  3. BLOOMBERG: Ally Settles Fannie Buyback Demands for $462 Million By Hugh Son – Dec 27, 2010 5:48 PM ET...
  4. Report: U.S. suggests Ally Financial breakup Crain’s- The U.S. Treasury Department, which put $17.2 billion into...
  5. Ally CEO Says Firm `Screwed Up’ Using Robosigners on Foreclosure Documents By Natalie Doss and Nishad Majmudar – Nov 3, 2010...

This post was written by:

- who has written 6933 posts on FORECLOSURE FRAUD | by DinSFLA.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

Contact the author

Leave a Reply

Chip Parker,
RR Compliance Consulting Inc was established to provide training and support services to the Loss Mitigation Consulting Community.  There is a huge void in the market for this training since those who are truly practicing in the field have neither the time nor interest in providing this training.
Jamie Ranney,
Kenneth Eric Trent,
Advertise your business on