Roughly 33 full-timers will lose their jobs when Ally Financial closes its MBS broker/dealer operation, according to a company spokeswoman.
No further information about the layoffs was disseminated by Ally, which is 74% controlled by the Treasury Department.
Earlier in the week Ally filed an SEC statement on the closure, saying MBS trading is “no longer strategic” for the company. Ally said it “continually evaluates its business activities and makes modifications as appropriate.” The MBS broker/dealer unit was housed under Ally Securities.
Ally's mortgage CEO is Tom Marano, a former Wall Street MBS executive who did stints at Bear Stearns and Cerberus Capital.
Ally controls Residential Capital Corp./GMAC, the nation's sixth largest residential mortgage lender. A few months back ResCap/GMAC slashed its presence in the correspondent lending space, though it maintains key relationships with certain firms.
ResCap/GMAC continues to fund loans through retail and wholesale channels.