Ally Financial Inc. (Ally) has been granted a release from potential legal and financial liabilities arising from its ownership of Residential Capital LLC (ResCap), as part of a general settlement approved on Dec. 11, in resolution of the ResCap bankruptcy process. ResCap-related exposures had been a source of considerable risk for Ally's credit profile in the past five years. In the past year, Ally has continued with a process of transformation that has included the sale of noncore assets, repurchase of preferred securities held by the U.S. government, issuance of $1.3 billion in equity, a positive outcome to the resubmission of its regulatory capital plan, and continuing efforts to improve the profitability of its U.S. auto finance franchise. Collectively, these
