Ally Financial posts second-quarter loss

Welcome to the morning roundup. Here's a look at what's news in banking and finance.

Ally posts loss. Ally Financial posted a second-quarter loss of $898 million, Bloomberg reports, including a large charge-off related to its mortgage unit bankruptcy. The U.S. government still owns the majority of the company.

Principal reduction. Fannie Mae and Freddie Mac are continuing to oppose reducing principal amounts on loans it holds despite pressure from the Treasury to do so, Forbes says. The two mortgage giants own about half of the country's mortgages.

China/Iran. The Chinese government is asking the U.S. to rescind sanctions it announced against a Chinese bank that the White House says helped Iran evade its own sanctions, the Associated Press reports. China says it's hurting U.S.-Chinese relations.