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RESCU Research
RESCU Research
RESCU Research
(OTC: RESCU)
Story:
Description
General Motors Acceptance Corp
Residential Capital (GMAC ResCap) is a
financial services company focused on
residential loans. The company held
subprime mortgages and acted as a
securitizer of residential mortgages that were
sold to the Residential Mortgage Backed
Securities (RMBS) Trusts.
In 2011, the company fell under as losses
mount for the mortgages held and having
missed an interest payment. Lawsuits also
followed for losses incurred by the RMBS
Trusts and the respective Monolines that
provided credit insurance for particular
tranches in the RMBS Trusts. Following that
in 2012, GMAC Residential Capital filed for
Chapter 11 bankruptcy protection.
Upon the confirmation of bankruptcy plan
in Dec 13, unsecured creditors (RMBS
Trusts and Monolines) were given units to
ResCap (RESCU). RESCU will act as a
liquidating trust and seek to recover
losses by suing the mortgage originators.
The Case:
807
46
60.00%
512
1,872
49
80.00%
1,537
3,611
53
60.00%
2,199
4
10.00%
205
4
10.00%
615
4
10.00%
879
717
412
97.8
11.55
-19%
4
-5.14%
2,151
412
97.3
26.34
85%
4
16.59%
3,078
412
96.8
35.73
151%
4
25.81%