[car fanatics]

Source
Photo credit: Ally Financial
May 18, 2012
By: CF Staff

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, the Ally’s foreign ops account for $30 billion of the $180 billion on Ally’s balance sheet and include auto finance, insurance, and banking and deposit operations in Canada, Mexico, Europe, the United Kingdom and South America. If GM were to pull the sales trigger, it could increase auto lending globally, especially in growing markets.

This situation recalls 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.