Ally Financial (ALLY) 10-Q 2010 Q2 Quarterly report

Exhibit 12

ALLY FINANCIAL INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Six months ended June 30,			Year ended December 31,
($ in millions)	2010 (a)			2009 (a)			2008 (a)			2007 (a)			2006 (a)			2005 (a)
Earnings
Consolidated net income (loss) from continuing operations	$	558		$	(7,006	)	$	4,902		$	(1,879	)	$	1,863		$	2,057
Income tax expense (benefit) from continuing operations		69			77			(131	)		514			31			1,084
Equity-method investee distribution		—			—			111			65			651			283
Equity-method investee (losses) earnings		(25	)		(10	)		533			5			(512	)		(142	)
Minority interest expense		1			1			1			2			9			(57	)
Consolidated income (loss) from continuing operations before income taxes, minority interest, and income (loss) from equity investees		603			(6,938	)		5,416			(1,293	)		2,042			3,225
Fixed charges		3,421			7,253			10,351			13,798			14,752			12,035
Earnings available for fixed charges	$	4,024		$	315		$	15,767		$	12,505		$	16,794		$	15,260
Fixed charges
Interest, discount, and issuance expense on debt	$	3,404		$	7,217		$	10,298		$	13,738		$	14,686		$	11,976
Portion of rentals representative of the interest factor		17			36			53			60			66			59
Total fixed charges		3,421			7,253			10,351			13,798			14,752			12,035
Preferred dividend requirements		594			1,224			—			192			22			—
Total fixed charges and preferred dividend requirements	$	4,015		$	8,477		$	10,351		$	13,990		$	14,774		$	12,035
Ratio of earnings to fixed charges (b)		1.18			0.04			1.52			0.91			1.14			1.27
Ratio of earnings to fixed charges and preferred dividend requirements (c)		1.00			0.04			1.52			0.89			1.14			1.27

(a) During 2009, we committed to sell certain operations of our International Automotive Finance operations, Insurance operations, Mortgage operations, and Commercial Finance Group. We report these businesses separately as discontinued operations in the Consolidated Financial Statements. Refer to Note 2 to the Consolidated Financial Statements for further discussion of our discontinued operations. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations.

(b) The ratio indicates a less than one-to-one coverage for the years ended December 31, 2009 and 2007. Earnings available for fixed charges for the years ended December 31, 2009 and 2007, were inadequate to cover total fixed charges. The deficit amounts for the ratio were $6,938 million and $1,293 million for the years ended December 31, 2009 and 2007, respectively.

(c) The ratio indicates a less than one-to-one coverage for the years ended December 31, 2009 and 2007. Earnings available for fixed charges and preferred dividend requirements for the years ended December 31, 2009 and 2007, were inadequate to cover total fixed charges and preferred dividend requirements. The deficit amounts for the ratio were $8,162 million and $1,485 million for the years ended December 31, 2009 and 2007, respectively.