NEWS: Ally Financial Inc. said its net income shrank as mortgage profits dried up.
DETAILS: Ally, the former finance arm of automaker General Motors, now operates as an auto finance company and bank after being bailed out by the government. Earnings in its auto finance unit were about flat with the year-ago quarter, but it lost $5 million on mortgages, after posting a $331 million profit in that unit a year ago.
In May, Ally cut ties to its troubled mortgage lending and servicing subsidiary Residential Capital LLC, or ResCap, when the subsidiary filed for bankruptcy protection.
NUMBERS: Net income of $91 million, down from $384 million a year earlier.
FUTURE: Ally has said it is aiming to place $1 billion worth of private equity. Currently the U.S. government owns 74 percent of its common shares. That stake will fall to 66 percent once the $1 billion placement closes, an Ally spokeswoman said on Tuesday.