Ally Financial Closer To Freedom Through Upcoming Stake Cut
Former General Motors lending subsidiary Ally Financial is one step closer from leaving government oversight, thanks to the United States Treasury cutting its stake in the company.
Bloomberg reports the Treasury will sell its stake of 75.1 million shares on the open market, the first divestiture since April 2014’s IPO. Though no word on the size or timeline regarding the cut was given, Treasury CIO Charmian Uy says the move will be made with “maximum returns for taxpayers” in mind.
Ally representative Gina Proia added that the agency’s stake cut “was another step toward” exiting government ownership under the TARP program, “delivering additional value to shareholders, including the U.S. taxpayer” in so doing.
At its peak, the Treasury owned 74 percent of the lender, with the U.S. investing $17.2 billion and receiving $17.8 billion after asset sales.
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