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March 8, 2016

Former Ally Financial CEO Alleges CFPB “Abused its Power” to Coerce $100 Million Settlement

The former CEO of Ally Financial Inc. claims the Consumer Financial Protection Bureau (CFBP) “abused its power” to coerce a $100 million settlement by Ally over what he says are “trumped up” charges of discrimination.

“Michael A. Carpenter, who helmed Detroit-based Ally from 2009 to 2015, complained in an exclusive interview that Obama’s powerful consumer watchdog agency threatened to derail the bank’s efforts to obtain key regulatory approvals if it didn’t agree to settle the allegations out of court,” reported the New York Post.

Last month, the Post reported that a memo, “sent by top Consumer Financial Protection Bureau civil-rights prosecutors to the bureau’s director,” shows that the CFPB “exaggerated” charges of discrimination in “probes of Ally Bank and other defendants in the $900 billion car-lending business.”

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