ResCap’s Marano Resigns as Chief of Bankrupt Mortgage Lender
Thomas Marano is leaving the chief executive officer’s post at Ally Financial Inc. (ALLY)’s bankrupt Residential Capital mortgage unit as creditors wrangle over who will pay for the firm’s soured home loans.
Marano, recruited in 2008 to turn around New York-based ResCap, agreed to continue as an outside director to help facilitate a smooth transition while he pursues other interests, according to a statement today from the firm. He remains chairman, according to Alex Stockham, a ResCap spokesman at Rubenstein Associates Inc.
ResCap was among the biggest U.S. subprime lenders, specializing in loans to people with weak credit. Such loans were blamed for fueling the U.S. housing bubble, and record defaults propelled ResCap into bankruptcy in May 2012. Marano, a former head of mortgages and asset-backed securities at Bear Stearns Cos. before it collapsed in 2008, became ResCap’s non-executive chairman in April of that year as losses mounted, and was named chairman and CEO three months later.
Ally, formerly known as GMAC Inc., has said it wants to stage an initial public offering to repay a U.S. bailout valued at $17.2 billion. Ally CEO Michael Carpenter put those plans on hold, saying that ResCap’s fate must be decided first.
Creditors are pressing to make Ally responsible for some of ResCap’s debts and have resisted Carpenter’s offer of $750 million to cover their claims. Carpenter has said the claims aren’t valid and called his offer a “hostage payment” to buy peace.
Ally, based in Detroit, specializes in auto lending and also runs an online consumer bank.