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Ally Financial To Pay $2.1 Billion To Settle Rescap Claims

Shorebreak   |     |   4,117 posts since 2010

Ally Financial agreed Thursday to pay $2.1 billion to settle legal claims tied to its bankrupt Residential Capital unit—nearly triple the amount it had initially offered.

Ally hopes that the deal will put an end to allegations that ResCap was stripped of choice assets such as Ally Bank before being put into bankruptcy, leaving creditors of the subprime mortgage business empty-handed.

Ally to Pay $2.1 Billion to Settle ResCap Claims