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Time Running Out For Ally Financial's Restructuring

Monday, May 7, 2012 - 5:56 AMAlly Bank - Details
From Reuters
Today, Residential Capital (ResCap) - Ally's mortgage servicing and lending unit that turned from being a profit engine to a lemon - is again on the verge of being put into bankruptcy, possibly within a week, according to sources with direct knowledge of the situation.

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The article also described some potential issues in Ally's future relationships with GM and Chrysler for auto financing. But the main concern now is a ResCap bankruptcy. It should not have any immediate impact to Ally Bank depositors, but it could be costly for the bank's parent (which could have long-term consequences for depositors). There has been speculation that the government is pressuring Ally to sell itself as a whole or in pieces so that Ally will be able to quickly pay back taxpayers the bailout funds.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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