Mortgage Unit Of Ally Financial Files For Bankruptcy

DETROIT (WWJ/AP) – The mortgage unit of Detroit-based Ally Financial has filed for Chapter 11 bankruptcy.

Ally, formerly GMAC, is 74 percent owned by the U.S. government.

It still owes the government  just under $12 billion from a $17.2 billion dollar loan it got during the financial meltdown of 2008 and ’09.

Ally’s Residential Capital LLC, ResCap for short, filed for bankruptcy protection in New York.

The filing will separate ResCap from Ally’s auto loan and banking businesses.


Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Detroit

Best Fall Festivals In Metro DetroitFrom music to art to special events, there's a little something for everyone's delight.
Best 4th Of July Concerts In Metro DetroitStaying home this weekend? Celebrate the 4th of July by rocking out at one of these shows.

Watch & Listen