Ally Says ResCap Could Be Headed For Bankruptcy

Law360, New York (April 26, 2012, 10:05 PM EDT) -- Ally Financial Inc. executives are considering bankruptcy for the company's troubled mortgage unit Residential Capital LLC, which last week missed a $20 million interest payment on $473 million in outstanding notes due in 2013, they said Thursday.

In a conference call with investors on Ally's first-quarter results, CEO Michael Carpenter said Ally was continuing to distance itself from the mortgage business and was considering options ranging from “staying the course and fighting the good fight to bankruptcy.”

“We think that the single most important thing that...
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