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.Sponsor Content
Ally Financial earnings tumble 76% from sour mortgages