Treasury Would Support Bankruptcy Of (Gubment-Owned GMAC/)Ally's ResCap Unit-Official

NASDAQ ^ | 5-7-12 | Alan Zibel and Andrew R. Johnson

[tcrlaf]

The U.S. Treasury Department has agreed to support a bankruptcy filing for the struggling home-loan unit of government-owned lender Ally Financial Inc., if the company chooses to take that route, an official said Monday.

A bankruptcy filing for Ally's subsidiary, Residential Capital, has been widely expected in the coming weeks, when the unit faces more than $300 million of bond-related payments. It recently missed a $20 million bond-interest payment, which has a grace period until May 17.

ResCap, once one of the largest subprime-mortgage lenders in the country, has been a drag on Ally, which halted plans for an initial public offering last year as mortgage woes mounted.

--SNIP---

The former in-house financing arm of General Motors Co. (GM), Ally was bailed out as part of the government's broader rescue of the auto industry. The U.S. owns about 74% of Ally, which received more than $17 billion in aid during the financial crisis. Of that, about $5.5 billion has now been repaid.

[tcrlaf]

HOPE-N-CHANGE, SUCKAZ!!

Obama poured SEVENTEEN BILLION DOLLARS of your money down this hole.

[ColdOne]

liars, crooks and thieves.

[TigersEye]

Looks like a sympathy-scare tactic setup story for another corporate bailout too.
Mebbe sum 0bama-money get to da hood in Da Won's third term!?!

(Shhh, don't tell da Trayvon's dat two is da limit. Dey think it's NO-LIMIT.)

[Repeat Offender]

liars, crooks and thieves.

Sounds like a Cher song.....horrible.