Treasury Says ResCap Filing Unfortunate, Taxpayers Gain
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U.S. Assistant Treasury Secretary for Financial Stability Timothy G. Massad said today that while Residential Capital LLC’s Chapter 11 bankruptcy filing is unfortunate, the “action puts taxpayers in a stronger position to continue recovering their investment in Ally Financial.”
Massad, in a statement issued in Washington, said the Treasury Department had consented to the filing. Massad said Chapter 11 provides a single forum “for reviewing and resolving” claims against ResCap, a residential mortgage company owned by Ally Financial Inc.