Reading Between Ally's Lines

If you read between the lines of Ally Financial's just released earnings statement you get the impression that CEO Michael Carpenter continues to favor auto lending over mortgage finance. Maybe it's me, but that's what I've been hearing from people in the industry since this past fall. "...we are proud of our central role in the recovery of the U.S. auto industry," Carpenter said in a statement. "As a result of Ally's quick action and the U.S. government's financial support, approximately 1,400 Chrysler dealers, employing an estimated 70,000 people, were able to keep their businesses open and contribute to the stability of their communities." It sounds like the press release was written by President Obama himself. It continues: "Over the past twelve months Ally has financed 82 percent of the vehicles sold to nearly 5,000 GM and Chrysler dealers in the U.S. In addition, the company financed 700,000 new vehicles for GM and Chrysler consumers within the last year." In the firm's "highlights" section mortgage banking doesn't get much play except for this one statement: "In addition, Residential Capital, LLC (ResCap) reached an agreement to sell its European mortgage origination and servicing business"...