Barney Frank Seeks Congressional Probe Of Ally Financial

Barney Frank Seeks Congressional Probe Of Ally Financial Rep. Barney Frank, D-Mass., has begun pushing for a congressional investigation of Ally Financial Inc.

Reuters reports that Frank's request comes one day after Massachusetts Attorney General Martha Coakley petitioned the heads of the Senate Banking Committee and the House Financial Services Committee to investigate Ally Financial, one of five lenders Coakley sued last week for what her office alleges to be illegal foreclosures and deceptive loan servicing. In a letter to Rep. Spencer Bachus, R-Ala., chairman of the House Financial Services Committee, Frank referred to the federal government's 74% ownership of Ally as being a key reason for an inquiry.

‘Given Ally's significant role in the mortgage business and the federal government's considerable financial investment, a prompt investigation of this matter by the committee is warranted,’ Frank wrote.

Spokespersons for the both the House committee and Ally Financial did not comment on the Frank request.

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