Ally Financial made a leap forwards in its repayment to the U.S. Department of the Treasury of some $5 billion in TARP funding it received amid the financial crisis.
Ally, formerly GMAC, announced it is repaying $2.7 billion from the sale of all the Trust Preferred Securities that the Treasury holds in Ally. Ally has already paid back $2.2 billion to the Treasury.
"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."
Ally Financial is one of the world's largest automotive financial services companies. Its other business units include mortgage operations, commercial finance and retail banking through its online bank subsidiary Ally Bank.