The Treasury Department, which controls almost 75% of Ally Financial, named investment banker John Durrett to the bank holding company's board of directors.
Durrett, a 27 year veteran of McKinsey & Co., is currently a strategic advisor to Serent Capital. Ally controls the nation's fifth largest mortgage banking firm, Residential Capital Corp., Minneapolis.
"This appointment is part of the Administration's ongoing commitment to prudent stewardship of TARP investments," said acting assistant secretary for Financial Stability Tim Massad. "We believe that John Durrett will represent shareholders’ interests effectively."
The Treasury hopes to take Ally public this year and recently began interviewing investment bankers for the initial public offering.
Late last year Treasury converted $5.5 billion of GMAC preferred stock it owns into common. The move increased Treasury's stake in Ally's common to 73.8% from 56.3% at Dec. 29.
