Detroit-based financial company Ally Fiancial’s troubled mortgage division Residential Capital LLC has filed for Chapter 11 bankruptcy Monday, and has stated that it may sell its international financial operations.
To be more specific, Ally’s foreign ops account for $30 billion of the $180 billion on Ally’s balance sheet and include auto finance, insurance, as well as banking and deposit operations in Canada, Mexico, Europe, the United Kingdom, and South America. If GM were to pull the trigger on the sale, it could increase auto lending globally, especially in growing markets.
This situation takes us back to 2010, when GM acquired AmeriCredit, renaming it GM Financial to expand its subprime auto lending and leasing. Currently, GM owns 9.9 percent of Ally Financial.
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I wish GM all the success with Ally. My present 2009 Equinox is financed through Ally with zero (0) percent interest, and I will finance every Gm vehicle purchase with Ally.