Politics and Money

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Don't forget the GMAC Mortgage bailout.

http://content.usatoday.com/communities/driveon/post/2012/05/auto-bailout-ex-gmac-puts-mortgage-unit-in-bankruptcy/1

May 14, 2012

Former GMAC puts mortgage unit in bankruptcy

Ally Financial, the former GMAC, which still owes taxpayers about $12 billion $17.2 billion in loans it got as part of the General Motors and Chrysler bailouts, has nudged its home mortgage subsidiary into bankruptcy court to try end the drag of its toxic mortgage assets on Ally's profitable businesses, such as car loans and direct banking.

The Residential Capital (ResCap) unit filed for Chapter 11 bankruptcy early today and Ally CEO Michael Carpenter said in a statement: "The action by ResCap will enable Ally to achieve a permanent solution to its legacy mortgage risks and put these issues behind us." He said the action will help Ally focus on "further strengthening its already leading U.S. auto finance and direct banking franchises."
............con't....