ResCap Probe of Ally May Alter Creditor Talks

An investigative report on Ally Financial  Inc.’s relationship with its bankrupt mortgage arm, Residential Capital LLC, may affect settlement talks between the companies and creditors who blame Ally for $25 billion in potential claims.

The court-ordered report, due today, will examine allegations that Ally exerted so much influence over ResCap that the auto lender can be forced to pay its unit’s unsecured debts.

Click here to continue reading.

Bloomberg BRIEF Newsletters