The ring-fencing motivation prompting Ally Financial to consider a bankruptcy filing for its...

|By:, SA News Editor

The ring-fencing motivation prompting Ally Financial to consider a bankruptcy filing for its mortgage lending unit lost out at Bank of America (BAC), which decided last summer that bankruptcy for its Countrywide subsidiary carried too many risks. Brian Moynihan presented the idea to directors in June but advised against it, concerned how it might affect Merrill Lynch and other subsidiaries.