ResCap Wants Ex-Officers, Affiliates Spared From MBS Suits

Law360, New York (May 29, 2012, 4:27 PM EDT) -- Residential Capital LLC shot back Friday at pension funds and financial companies including Allstate Insurance Co. that have targeted it over soured mortgage-backed securities, seeking to pause such litigation against its executives and affiliated companies while it undergoes bankruptcy restructuring.

In a complaint filed in New York bankruptcy court, ResCap seeks to extend the automatic stay over 27 mortgage-backed securities lawsuits against it that also target nondebtor groups including its parent Ally Financial Inc., claiming that such litigation would drain the insurance policies and proceeds that...
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