Treasury to sell 41 percent of its Ally Financial stock

Jan. 16, 2014 at 11:10 AM

WASHINGTON, Jan. 16 (UPI) -- The U.S. Treasury said Thursday it would sell 410,000 shares of Ally Financial common stock, reducing the taxpayer's ownership of the company to 37 percent.

After the sale, which is expected to bring in $3 billion, taxpayers, which bailed out Ally with $17.2 billion in emergency funds during the financial crisis, will own 571,971 shares of common stock.

The sale will also bring Ally 89 percent of the way in repaying the government. With the $3 billion recouped, the Treasury estimated Ally will have paid back about $15.3 billion of the $17.2 billion.

The sale will also bring the total payback of Troubled Asset Relief Program funds to $435.8 billion, $13.6 more than the $422.2 billion loaned to companies, the Treasury said.

"Treasury will continue to exit the remaining investments in a manner that balances maximizing the taxpayer's return on investments with the speed of our recovery," the department said in a statement.

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