Ally to Pay $52 Million to Resolve Justice Department ResCap Probe
November 21 2016 - 7:10PM
Dow Jones News
Ally Financial Inc. said it will pay $52 million under a
settlement related to Residential Capital LLC mortgage-backed
securities.
Ally said the settlement with the U.S. Justice Department
resolves all outstanding DOJ investigations and potential claims
concerning the securities.
The lender said in a Nov. 2 securities filing that it was in
advanced settlement talks and had reserved $52 million.
Ally's former ResCap unit, a subprime mortgage lender, filed for
bankruptcy in 2012 as litigation over soured mortgage securities
mounted and bond payments loomed.
Ally said Monday that it agreed to withdraw the broker-dealer
registration of Ally Securities LLC, which isn't a "strategically
significant part of the company." The move won't affect Ally's
ongoing operations.
Ally, formerly part of General Motors Co., has long focused on
auto lending. It owns online bank Ally Bank and its other
operations include wealth management and corporate finance.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 21, 2016 18:55 ET (23:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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