Skip to comments.Treasury Would Support Bankruptcy Of (Gubment-Owned GMAC/)Ally's ResCap Unit-Official
Posted on 05/07/2012 1:18:07 PM PDT by 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.
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.
(Excerpt) Read more at nasdaq.com ...
Obama poured SEVENTEEN BILLION DOLLARS of your money down this hole.
liars, crooks and thieves.
(Shhh, don't tell da Trayvon's dat two is da limit. Dey think it's NO-LIMIT.)
Sounds like a Cher song.....horrible.