Deals
Ally Gets Treasury Nod for ResCap as U.S. Seeks Repayment
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Ally Financial Inc., the auto lender majority-owned by taxpayers, received U.S. Treasury Department approval to put its Residential Capital unit into bankruptcy as the government seeks to recover bailout funds.
The Treasury will support directors at Ally and ResCap if they decide that filing for court protection from creditors is the best course for the mortgage unit, said an Obama administration official, who asked for anonymity because the arrangements haven’t been made public. The approval is conditioned on a review of terms, the person said yesterday.