The U.S. Trustee's office said in court papers that Residential Capital LLC must prove that proposed bonuses valued at $7.8 million are appropriate given that some of the money would be paid to the bankrupt mortgage company's insiders, Bloomberg News reported yesterday. The proposed payments would go to 163 individuals, with two insiders getting 14 percent of the total and six others receiving another 32 percent, the U.S. Trustee said. ResCap, based in New York, filed for bankruptcy in May with plans to sell most of its assets and resolve legal claims related to residential mortgage-backed securities. The company is owned by Detroit-based auto lender Ally Financial Inc.
