Feb 8 The U.S. Treasury, under pressure to wind down its crisis-era bailouts fast, believes it will take time to shed auto lender Ally Financial, because the company's mortgage lending unit is in a messy bankruptcy, a person familiar with the matter told Reuters.
Ally is one of Treasury's largest remaining holdings, but the lender will be hard to exit as long as it is working through the bankruptcy of its Residential Capital unit and is also selling its international operations, the person said.
"There are particular challenges with Ally," the person familiar with Treasury's thinking said. "There is no specific timetable," for a sale or stock offering, he added. Treasury understands the company's difficulties and supports the company's chief executive, Michael Carpenter, the source added.