Ally Financial Begins Repayment of U.S. Treasury Investment
Ally Financial Inc. announced on March 2 that the U.S. Department of the Treasury will be repaid $2.7 billion from the sale of all the Trust Preferred Securities that the Treasury holds in Ally. This represents the full value of the Treasury's investment in these securities.
DETROIT — Ally Financial Inc. announced on March 2 that the U.S. Department of the Treasury will be repaid $2.7 billion from the sale of all the Trust Preferred Securities that the Treasury holds in Ally. This represents the full value of the Treasury's investment in these securities.
The offering was priced on March 2 at 8.125 percent and was expected to close on March 7, 2011. In addition to the proceeds from this transaction, Ally has paid approximately $2.2 billion in dividends on the Treasury investment to date.
"This transaction marks a key step in the company's plan to repay the U.S. taxpayer in full," said Ally Chief Executive Officer Michael A. Carpenter. "We are grateful for the taxpayer's investment in the company during the financial crisis, which enabled Ally to play an integral role in the U.S. auto recovery and ensure that thousands of automotive dealers and millions of consumers had access to credit.
“We are encouraged by our progress to date, and our ability to support the auto industry for the long term. We are committed to repaying the remaining investment to the U.S. taxpayer over time," Carpenter added.
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