I have yet see this covered on the nightly news, albeit I may have missed it one night. However, this explains a lot about the numbers GM posted. The fact that we have heard very little if anything on this is also concerning. In a nutshell, the government has opted to file chapter 11 for this GM lending branch so it does not have to pay back the taxpayer dollar for dollar...... Former GMAC puts mortgage unit in bankruptcy From the USA Today article.... Ally Financial, the former GMAC, which still owes taxpayers about $12 billion $17.2 billion in loans it got as part of the General Motors and Chrysler bailouts, has nudged its home mortgage subsidiary into bankruptcy court to try end the drag of its toxic mortgage assets on Ally's profitable businesses, such as car loans and direct banking .... and... Taking ResCap into bankruptcy carries political implications because it's a part of the auto bailout that didn't turn out as planned. The government still owns 74% of Ally, and it's repaid only $5.5 billion of $17.2 billion it got in the bailout so it could keep offering car dealer and buyer financing for GM and Chrysler. Ally received more than twice the taxpayer help as Chrysler.