Ally Considers Bankruptcy For Mortgage Unit

Law360, New York (November 9, 2011, 12:34 PM EST) -- Detroit-based Ally Financial Inc., which last week said it would curb its mortgage lender Residential Capital LLC, on Wednesday was reportedly considering court-protected bankruptcy to deal with the struggling division.

Ally, which is partly owned by the federal government for funds it received during the financial crisis, is being advised by law firm Kirkland & Ellis LLP and investment bank Evercore Partners Inc. on a possible restructuring of the mortgage unit, according to the Wall Street Journal.

The report, which cited people familiar with the situation, came...
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