ResCap Creditors Seek Permission to Sue Ally
Bloomberg reported, based on a motion filed in bankruptcy court, that unsecured creditors of its Residential Capital unit may sue Ally Financial which may owe $25 billion.
Bloomberg said, based on a motion filed in bankruptcy court, that Ally created the “mortgage securitization mess” that helped force ResCap into bankruptcy. To save itself, Ally allegedly took assets from ResCap and imposed liabilities on the unit in a scheme that began as early as 2004.
To read the entire Bloomberg story, click here.
Previously on abfjournal.com: