ML-Implode News - Ally Financial: IPO... Or Bankruptcy?

"I encountered a car dealer from Dover, Delaware who I banked many years ago. Â He advised me that his quality auto paper was going thru Wells Fargo, but over the past month he has seen an explosion of paper going to Ally Bank. Â His term was: Â â€˜they are really diving deep and we can place brain dead paper with them instantly'".Â
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The trouble with the public disclosure is that Ally does not even begin to tell the story about what is going on with the RMBS litigation. The Ally ResCap unit is involved in more than two dozen separate RMBS litigations, not to mention several lawsuits with MBIA and other private label RMBS litigations. ResCap has its own bond holders, adding complexity to the corporate governance and legal picture.

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So tell us again, Secretary Geithner and President Obama, how do we get an IPO done for this bleeding zombie? Why is Treasury not actively seeking to liquidate Ally now, before this ersatz bank holding company is forced to file bankruptcy?

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Ally Financial: IPO... Or Bankruptcy?