An investigative report on Ally Financial Inc.’s relationship with its bankrupt mortgage arm, Residential Capital LLC, may affect settlement talks between the companies and creditors who blame Ally for $25 billion in potential claims.
The U.S. Treasury Department froze some 2013 pay for top executives at Ally Financial Inc. and General Motors Co., two firms yet to repay money received under special bailout terms during the financial crisis.
Ally Financial Inc., the auto lender whose mortgage unit went bankrupt, may sell international car- finance and insurance operations to help repay a $17.2 billion U.S. bailout, Chief Executive Officer Michael Carpenter said.
GMAC Inc. , the U.S.-controlled auto and home lender, is close to naming a chief financial officer and has considered appointing Barbara Yastine , the former CFO for investment banking at Credit Suisse Group AG and Citigroup Inc., according to three people with knowledge of the search.
Ally Financial Inc., the second- largest remaining investment by the U.S. Treasury’s bailout fund, will repay the government by 2014 on the strength of its auto-finance business, its chief executive officer said.