Ally Said to Tap Cerberus Manager for Turnaround Help

Ally Financial Inc., the largest U.S. auto lender, enlisted Cerberus Capital Management LP’s Lenard Tessler to help oversee turnaround efforts and salvage the government’s $17.2 billion investment, four people with knowledge of the matter said.

Tessler, 59, is a former director of Detroit-based Ally and remains an adviser to the bank’s board. His assignment follows a U.S. suggestion this month that the bailed-out lender name someone to help restructure the money-losing Residential Capital mortgage unit and get Ally’s public stock offering back on course, according to the people, who asked for anonymity because the discussions were private.