Ally Financial says its Residential Capital mortgage unit seeks Ch.11 bankruptcy protection

DETROIT — The U.S. government is hoping that Monday’s bankruptcy filing by Ally Financial Inc.’s troubled mortgage business will help the company repay its government bailout faster.

Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally’s auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally’s bailout from 2008 and 2009, Ally said in a statement.

Ally also said Monday that it is exploring the possible sale of its international operations, a move that also should help strengthen its finances and make payments to the government. International businesses include auto loan, insurance and banking operations in Canada, Mexico, Europe, England and South America.

Ally, which is 74 percent owned by the U.S. government, was the financial arm of General Motors Co. until the banking industry meltdown in 2008. It needed a $17.2 billion bailout to survive the downturn.

Rest here…

Ally Bank “Truck”

Ally Bank “Bike”

Ally Bank “Pony”

Ally Bank “Hide”

Just like the typical smear campaign… Attempt to make others look bad and shift the blame because your practices are even worse…

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