Ally Financial Inc., the auto lender majority-owned by U.S. taxpayers, received conditional Treasury Department approval for plans to put its Residential Capital unit into bankruptcy, Bloomberg News reported yesterday. The Treasury will support the decision of directors at Ally and ResCap if they decide a bankruptcy filing is the best course of action. Chief Executive Officer Michael Carpenter is searching for ways to repay U.S. bailouts exceeding $17 billion that left the U.S. with a 74 percent stake. Administration officials have concluded that addressing ResCap's mortgage losses will put taxpayers in a better position to recoup their investment in Ally.
