Res Cap en Ally Bank to sell some assets, place another in bankruptcy, to pay off taxpayers <p align="LEFT">Detroit&#39;s&nbsp;Ally Bank, formerly known as&nbsp;GMAC, says it will sell off foreign subsidiaries and put its mortgage division into bankruptcy, in an attempt to pay back its government bailout.</p><p align="LEFT">The U.S. Treasury gave more than $17&nbsp;billion&nbsp;to GMAC when it bailed out GM.</p><p align="LEFT">The money was meant to prevent the collapse of loan availability for GM vehicles and GM dealers.</p><p align="LEFT">So far, GMAC, now Ally Bank, has paid back&nbsp;$&nbsp;5.5&nbsp;billion.&nbsp;&nbsp;&nbsp;</p><p align="LEFT">But it was unclear how the company would pay back the rest. Its mortgage arm loses money every quarter on subprime mortgage loans made before the bank crisis of 2008.</p><p align="LEFT">Now Ally says it will put its mortgage division into bankruptcy, and sell off foreign subsidiaries.&nbsp;&nbsp; The company says that will allow it to repay a total of 2/3 of what it owes the Treasury before the end of the year, leaving a balance of about $6&nbsp;billion.<span style="display: none;">&nbsp;</span></p><p align="LEFT">Ally officials say they will provide&nbsp;bankruptcy financing for the&nbsp;mortgage arm, known as Res Cap, and strike a&nbsp;financial&nbsp;deal with&nbsp;the company&#39;s creditors, so that Ally can come out of the&nbsp;mortgage division&#39;s&nbsp;bankruptcy&nbsp;with no additional liabilities. Mon, 14 May 2012 21:46:35 +0000 Tracy Samilton 7468 at