Ally Financial earnings tumble 76% from sour mortgages
Net income fell to $91 million from $384 million a year earlier, the Detroit-based bank said today in a statement. Results included a charge for last month’s accord over faulty home loans sold to U.S.-backed firms in the run-up to the 2008 financial crisis. Core pretax income slid to $269 million, or $271 million excluding certain one-time expenses, compared with $373 million a year earlier, Ally said.
CEO Michael Carpenter has sought to cap Ally’s costs from soured mortgages that led to a $17.2 billion government bailout and left the U.S. Treasury Department with a 74 percent stake. He’s resolving claims tied to the bankruptcy of the Residential Capital mortgage unit and refocusing Ally on its auto loans and online bank.