The struggling subprime mortgage unit of Detroit-based Ally Financial Inc.
may file for bankruptcy as early as next week.Ally, the nation's largest new car lender, is 74 percent owned by the U.S. Treasury as part of a $17.2 billion bailout.
The move could help Ally repay the rest of its bailout — and launch a long-stalled IPO.
Government officials have told Ally they do not object to a bankruptcy filing by the troubled mortgage unit known as Residential Capital LLC. Officials have said a court restructuring may help the government recover more funds for taxpayers.
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