Ally Financial Inc., the largest U.S. auto lender, tappedCerberus Capital Management LP's Lenard Tessler to help overseeturnaround efforts and salvage the government's $17.2 billioninvestment, four people with knowledge of the matter said.

Tessler, 59, is a former director of Detroit-based Ally andremains an adviser to the bank's board. His assignment follows aU.S. suggestion this month that the bailed-out lender name someoneto help restructure the money-losing Residential Capital mortgageunit and get Ally's public stock offering back on course, accordingto the people, who asked for anonymity because the discussions wereprivate.

“This guy is the latest in a long line of advisers,” said AdamSteer, an analyst at Brookfield Investment Management Inc., whoseparent Brookfield Asset Management Inc. oversees about $150 billionin assets. “It's the same story again and again,” Steer said. “Nomatter who's looking at it, the overwhelming issue is that ResCapis effectively insolvent.”

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