The U.S. Treasury, which put $17.2 billion into a bailout of Ally Financial Inc., has indicated it would prefer a breakup and sale of the lender -- including selling the company's captive finance auto business back to General Motors, its original owner. People familiar with the matter told Bloomberg the Treasury wants to make such moves because it no longer believes an initial public offering of Ally stock would succeed.
General Motors previously owned Ally when it was known as GMAC. GM spokesman Jim Cain declined to comment on the report.
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