Residential Capital LLC (ResCap), the bankrupt mortgage subsidiary of Ally Financial Inc., is seeking to delay mortgage-securities litigation against its parent company, several affiliated businesses and former executives, Dow Jones Newswires reported yesterday. ResCap filed a lawsuit on Friday against several financial-services firms, including Allstate Corp., Huntington Bancshares Inc. and Assured Guaranty Ltd., arguing their claims against ResCap affiliates over faulty mortgage-backed securities should be put on hold during its bankruptcy. Such a move would further Ally Financial's efforts to wall off mortgage litigation that has prevented it from paying back a government bailout it received during the financial crisis.
