Ally Financial Inc., the auto lender 74 percent owned by U.S. taxpayers, reported a second-quarter loss today as it took a $1.2 billion charge related to the bankruptcy filing by its mortgage subsidiary, Reuters reported. The Detroit-based lender said that it lost $898 million after taking the previously disclosed charge, compared with a $113 million profit a year before. Ally, previously known as GMAC Financial, was once the auto lending arm of what is now General Motors Co. Its Residential Capital mortgage unit filed for chapter 11 bankruptcy court protection on May 14 in a move that aims to protect the parent company from mortgage liabilities as it seeks to repay government bailouts.
