The U.S. Treasury is pushing for the breakup and sale of Ally Financial Inc., according to Bloomberg Law. The push suggests the Treasury is viewing the lending firm as a sum of its parts and looking for a different long-term strategy.
The news agencies cited sources familiar with the matter. The Treasury bailed out Ally Financial to the tune of $17 billion after the financial crisis.
Bloomberg’s unidentified sources claim the Treasury wants to break up and sell the lender because its initial public offering may not produce the desired outcome.
