The US Treasury and the watchdog for its bailout program are sparring over an exit plan for Ally Financial — which received $17.2 billion in TARP funds.

“While Treasury has noted that it has several options for possible divestment, including a public or private sale of stock or other sale of Ally assets, Treasury has not decided which of these exit paths to take,” TARP’s special inspector general said yesterday.

“It is essential that when the government finally exits Ally that it do so forever.”