The U.S. Treasury plans to start winding down its investment in Ally Financial Inc. as the bailed-out auto lender sells off international holdings and its mortgage subsidiary moves forward in bankruptcy proceedings, moves that could happen as soon as this year, the Wall Street Journal reported today. "As these two key initiatives are completed, Treasury will be able to monetize its remaining investment through a sale of stock [either through a public or private sale] or through further sale of assets," Assistant Secretary for Financial Stability Timothy Massad said in response to a critical report on Tuesday by the Special Inspector General for the Troubled Asset Relief Program. The U.S. government injected $17.2 billion into Ally, the one-time lending arm of GM, as part of the government's auto-industry rescue. Treasury, which has gotten $5.8 billion of that bailout money back via interest, dividends and a stock repurchase, now owns about 74 percent of Ally.
