Ally Financial Exits TARP; Treasury Gets $2.4B on Investment

Ally Financial announced that the U.S. Department of the Treasury sold its remaining 54.9 million shares of Ally common stock at $23.25 per share and as a result, Ally will have exited the Troubled Asset Relief Program (TARP) upon settlement of the sale.

The U.S. Treasury received $19.6 billion in total on the $17.2 billion Ally investment, which is $2.4 billion more than originally invested.

“This marks another major milestone in Ally’s journey,” said Ally chief executive officer Michael A. Carpenter. “We are appreciative of the investment the U.S. Treasury made in Ally and their understanding of how important available financing was to the U.S. auto recovery.

“Today, Ally stands as a stronger and more focused financial services company that is dedicated to continued progress in the future,” Carpenter continued.

Ally entered TARP in December 2008 as part of the effort to stabilize and strengthen the U.S. auto industry, and today is a leading auto finance provider. Since receiving the investment from the U.S. Treasury, Ally financed 7.4 million vehicles to U.S. consumers through its expansive auto dealer network, which currently stands at approximately 16,000 dealers. This represents about one in every 12 new vehicles sold to U.S. consumers during this timeframe.

Additionally, Ally provided inventory financing for nearly 23 million vehicles at more than 6,500 dealers since receiving the investment from the U.S. Treasury.

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Terry Mulreany
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