Ally Takes $270M Charge For ResCap, Foreclosure Issues

Law360, New York (January 31, 2012, 9:31 PM EST) -- Ally Financial Inc. has recorded a $270 million charge in the fourth quarter of 2011 for expected regulatory penalties for its foreclosure activities, mostly through its troubled Residential Capital LLC mortgage subsidiary, according to a Tuesday filing with the U.S. Securities and Exchange Commission.

The charge will result in a overall net loss for Ally in the fourth quarter, the company said in an 8-K filing. It also temporarily dropped the tangible net worth of ResCap to below $250 million, a level the company is required...
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