Ally Financial and principal reduction

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.”

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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