By Dow Jones Business News, September 30, 2013, 05:21:00 PM EDT
--James Mackey has been CFO of Ally since 2011
--Mr. Mackey will succeed Ross Kari at Freddie Mac
--Freddie Mac announced Mr. Kari's retirement plans last year
(Updates with details about Freddie Mac and other information throughout.)
By Andrew R. Johnson
Freddie Mac ( FMCC ) has named Ally Financial Inc. executive James Mackey its chief financial officer, replacing
outgoing CFO Ross Kari.
Mr. Mackey, 46, will assume the CFO role in November, around the same time he plans to leave Ally, where he currently
holds the CFO position, Freddie Mac said Monday.
Ally earlier on Monday announced that Mr. Mackey was leaving the Detroit-based company for another career opportunity.
Mr. Mackey, who has been CFO of Ally since June 2011, joined the government-owned auto lender in 2009. He previously was
an executive with Bank of America Corp. ( BAC ).
Freddie Mac in December announced Mr. Kari, who joined the company in 2009, planned to retire in second half of 2013.
Both it and sister company Fannie Mae (FNMA) have seen a high rate of executive turnover in recent years as the
government-supported mortgage-finance firms have worked to get on more stable footing after suffering billions of
dollars of losses as a result of the housing crisis, forcing the government to take them over in 2008.
Freddie Mac and Fannie Mae buy mortgages that meet specific criteria from lenders and provide the lenders with a
guarantee against future losses. The companies' fortunes have risen over the last year thanks to increasing home prices.
Donald Layton, chief executive of Freddie Mac, said in a statement Monday that Mr. Mackey's experience will be a boon
to the company during a "crucial time" for the firm.
As a result of Mr. Mackey's future departure from Ally, the auto lender said Monday that it named its corporate
treasurer Christopher Halmy to the CFO position.
Mr. Halmy will assume the CFO role on Nov. 8, the same day Mr. Mackey is set to leave, Ally said.
Mr. Halmy has been corporate treasurer since June 2011 and joined Ally in 2009. Before that, he held several treasury
and finance positions at Bank of America, Merrill Lynch, J.P. Morgan Chase & Co. (JPM) and other firms.
In the CFO role, Mr. Halmy will report to Jeffrey Brown, senior executive vice president of finance and corporate
planning for Ally. Bradley Brown, currently the structured funding executive for Ally, will become corporate treasurer.
The management announcement comes as Ally Chief Executive Michael Carpenter is preparing the company for a possible
initial public offering that could allow the U.S. Treasury Department to sell its majority stake in Ally.
Ally, the former in-house financing arm of General Motors Co. ( GM ), is 74% owned by the U.S. government after
receiving a $17.2 billion bailout during the financial crisis.
Ally's exposure to mortgage liabilities has prevented the company from moving forward on efforts to get out from
government ownership, though Ally has taken several steps in the last two years to try to eliminate those hurdles.
Its subprime mortgage subsidiary, Residential Capital LLC, filed for Chapter 11 bankruptcy in May 2012, a move
intended to help Ally separate itself from billions of dollars of liabilities tied to mortgage bonds. The U.S.
Bankruptcy Court in June approved a $2.1 billion settlement Ally reached with ResCap and the subsidiary's creditors that
largely shields Ally from such liabilities.
The company also announced a plan in August to raise $1 billion by selling common stock to about 12 investors in a bid
to raise its capital levels. In conjunction with the transaction, Ally is seeking the Federal Reserve's approval to
purchase about $5.9 billion of preferred shares held by Treasury, which would reduce the government's ownership in the
company to about 65%.
Following those moves, an IPO that would allow Treasury to sell its remaining stake could be possible, Mr. Carpenter
Write to Andrew R. Johnson at email@example.com
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