Irony alert: Ally Financial’s mortgage division (Residential Capital, or ResCap) filed for bankruptcy — in other words, it’s asking for a massive principal reduction from its creditors.

Said Ally CEO Michael Carpenter: “The action by ResCap will enable Ally to achieve a permanent solution to its legacy mortgage risks and put these issues behind us.”

I wonder if that argument would work with Ally’s mortgage holders. “Reducing our principal would allow my family to achieve a permanent solution to our legacy financial troubles and put these issues behind us.”