The U.S. Treasury Department, which put $17.2 billion into a bailout of Ally Financial Inc., would prefer a breakup and sale of the lender because an initial public offering may not succeed, according to people familiar with the matter.
Ally Financial Inc ., the U.S.-owned lender preparing for an initial public offering, is bolstering ties to General Motors Co . dealers amid signs the automaker may become a rival in vehicle financing.
Ally Financial Inc., the home and auto lender majority owned by U.S. taxpayers, will cease underwriting and trading mortgage-backed securities at its broker-dealer and dismiss most of its 33 traders and analysts.
A third-party monitor may be required as part of any settlement of a probe by 50 state attorneys general to ensure that banks comply with foreclosure practices, Connecticut Attorney General George Jepsen said.
Bank of America Corp. , ordered to return $500 million in deposits to Lehman Brothers Holdings Inc. and pay $90 million in interest, said it didn’t act with “maliciousness” and shouldn’t have to pay damages greater than $1.3 million of Lehman’s costs for litigating the case.
Bank of America Corp., JPMorgan Chase & Co. and three other banks agreed to pay $25 million to New York to resolve some monetary claims over the use of a mortgage database after reaching a $25 billion national settlement over foreclosure practices.