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.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.