By on December 22, 2014

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With its GMAC Financial leather jacket burning in the closet while a supermodel lip-syncs in the tub, Ally Financial is at last free from government ownership.

The Detroit News reports the U.S. Treasury sold its remaining 11.4 percent stake in the lender Friday, six years to the day the Bush II administration made the decision to rescue the automotive industry from certain doom; the Treasury held 74 percent to start. The sale — 54.9 million shares at $23.25 per share — brought in $1.3 billion, adding to the $19.6 billion recovered from three separate investments totalling $17.2 billion.

Overall, the bailout recovered the $60 billion invested under the Obama administration, though said administration didn’t include the $10 billion lost in that time, nor the initial $25 billion pumped into the ailing industry in the final days of the Bush II era.

The stake sale also follows a similar action a year earlier, when the department sold its last shares in General Motors. The sale drew a loss of the aforementioned $10 billion from a total investment of $49.5 billion.

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13 Comments on “Ally Leaves Government Ownership, US Treasury Exits Auto Industry...”


  • avatar
    JimC2

    The albatross falls from our necks…

  • avatar
    CoreyDL

    Well if the ol government doubled its money, that’s a pretty good return on an investment, and in a pretty short time.

    My sister’s name is Ally, and I cannot force myself to read it as the bank is named, but rather how we actually say her name.

  • avatar
    SCE to AUX

    Are the industry and the country better off now than 6 years ago?

    • 0 avatar
      stuki

      The country, certainly not. Debt is higher, as is the number of dudes rectal starved by the usual assortment of tax feeders in Gitmo. The median guy’s income is about the same, but now in drastically debased dollars, and funded by robing his children…. Tax and Fed feeders are better off, regardless in which industry.

      “The Industry” is also worse off in any meaningful sense, although lower oil prices and the ability to pay wages in debased currency may hide some of it from the naive observer. Compared to how much stronger, healthier and more competitive “the industry” would have been if they had been allowed to use bankruptcy to get out from under cement boot like contracts, and away from proven-to-be-incompetent “stakeholders”, they are certainly worse off.

    • 0 avatar

      6 years ago the economy was losing 800K jobs per month. The economy contracted almost 8% just in the last quarter of 2008. Around $20 TRILLION in wealth was wiped out when the DOW collapsed at the same time holders of mortgage backed securities couldn’t find anyone to buy them. Those were truly bleak times. 38% of household net worth evaporated almost overnight.

      To say we are worse off today is the height of idiocy.

      • 0 avatar
        JimC2

        That $20 trillion wasn’t wiped out because it was paper profit (an illusion) that never actually existed. And besides, any I investor worth their salt understands that when you take profits, the market won’t absorb much volume at the peak price before the price begins to fall.

  • avatar
    Elorac

    Only three comments? I remember a lot of loud, angry voices back in 07/08 that sure are quiet now…

  • avatar

    Not to split hairs, but I believe the money advanced to the automakers by the Bush 43 admin was more like $13.4 billion. And that came AFTER the Republicans in Congress turned the Bushies down for an auto bailout package forcing the admin to use TARP funds. It seems the Joint Chiefs had to remind the WH about the importance of the automotive supplier base which also supplies aerospace and military procurement. Many suppliers were already in BK court and a host of others were waiting on death row. The ripple impact of a supplier base collapse would have shut down all North American auto production. There was also a credit freeze at the time. Banks had no liquidity as they were holding toxic MBSs. It wasn’t a time for entertaining ideological notions of letting the market work things out.


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