Nov 21 Ally Financial Inc said it
agreed to pay $52 million to settle claims made by the U.S.
Department of Justice against its former mortgage unit related
to alleged misstatements about its residential mortgage-backed
The investigations and potential claims were against former
unit Residential Capital LLC and its units (ResCap RMBS), the
automotive lender said on Monday.
The settlement amount was fully reserved in the third
quarter, Ally said.
Ally also agreed to withdraw the broker-dealer registration
of Ally Securities LLC, formerly Residential Funding Securities
Ally said the decision would have no impact on operations as
the broker-dealer had not been a "significant" part of the
company for some time.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj