Rescap Rmbs Settlement Agreement

Rescap Rmbs Settlement Agreement

ResCap and Ally announced the deal on May 14, but the terms of the deal have been confidential until PSA filed today. The agreement governs all existing and potential claims between ResCap and Ally, its former parent company, and potential third party claims regarding ResCap. Certain securities claims of the Federal Housing Finance Agency and the Federal Deposit Insurance Corporation, as receiver for certain failed banks, are excluded from the settlement. Corporate clients will support ResCap`s insolvency plan in exchange for payment of their representation and warranty rights. ResCap forecasts $8.7 billion in re-pension and guarantee rights representing 3.9% of the initial unpaid capital balance of $221 billion. The exposures relate to 392 securitisation trusts issued by ResCap`s related companies between 2004 and 2008.


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