Ally Financial, the home and auto lender majority owned by US taxpayers, will cease underwriting and trading mortgage-backed securities at its broker-dealer and dismiss most of its 33 traders and analysts.
Ally Securities will continue doing business for the company’s insurance operations, according to a statement by Gina Proia, a spokeswoman for the Detroit-based firm. New York-based Ally Securities, led by Jeff Gravelle, will offer new jobs within the company to a “select number” of people, Proia said in a phone interview.
The firm “will be winding down that operation in an orderly manner over the coming weeks,” according to the statement. “These activities are no longer strategic for Ally.”
CEO Michael Carpenter is searching for ways to repay the US after President Obama vowed in 2009 to recover “every last dime” of taxpayer bailout money. Carpenter, who once predicted that a pending initial public offering could value Ally at $30 billion, later said the sale won’t happen until there’s progress on mortgages.
Ally Securities, Gina Proia, Ally Financial, Jeff Gravelle, President Obama, Ally
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