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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-12 05:54 AM
Original message
Bail out recipient in trouble again
The so called financial reform bill has done ZERO to stop this kind of thing, though I do appreciate the positive changes to my consumer credit card agreement.

Insight: Time running out for Ally Financial's restructuring

By Soyoung Kim, Rick Rothacker and Paritosh Bansal

NEW YORK/CHARLOTTE, North Carolina | Mon May 7, 2012 12:20am EDT

(Reuters) - In the fall of 2009, the board of GMAC, one of the largest U.S. auto and home-loan companies, gathered in New York to discuss whether to put its troubled mortgage unit into bankruptcy.

GMAC, now called Ally Financial, was just about to receive the last of $17 billion in taxpayer bailouts. The board, including directors named by the government, discussed whether to use bankruptcy to get rid of toxic mortgage assets that were pulling down the rest of the company, according to people who attended the meeting.


Today, Residential Capital (ResCap) - Ally's mortgage servicing and lending unit that turned from being a profit engine to a lemon - is again on the verge of being put into bankruptcy, possibly within a week, according to sources with direct knowledge of the situation.


Ally still owes the Treasury Department about $12 billion, and people close to the company and the government acknowledge there is no clarity as to how to pay that back.

(Treasury refused to comment.)

"Too big to fail is too big to exist." Senator Bernie Sanders.

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rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-12 06:41 AM
Response to Original message
1. Of course there's no comment
The press will never hound them for info
The politicians might ban them from the next 'Corruption Open Bar Night' where the politicians and press mingle
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-12 06:57 AM
Response to Reply #1
2. U.S. Journalism is dead. It's now the 24 hour propaganda cycle,
and/or the 24 hour "shiny thing for magpies" distraction cycle.

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