“Looking ahead, we will be focused on taking steps to further improve profitability, maintain strong core auto finance and direct banking franchises and fully exit the Troubled Asset Relief Program,” said CEO Michael Carpenter.
Ally Financial has completed a private placement of 216,667 shares of common stock for ~$1.3 billion. Ally, formerly GMAC, also bought back all outstanding shares of the Mandatorily Convertible Preferred securities held by the U.S. Department of the Treasury. As a result, Ally has repaid the U.S. taxpayers $12.3 billion of the $17.2 billion investment that was made in the company when its reckless lending practices in the home mortgage market forced it into bankruptcy.
This means that Ally has returned more than 70% of the Federal Government investment to the U.S. taxpayer. The U.S. Treasury currently holds 64% percent of the common equity in Ally, down from 74%, and the remaining 36% of the common is held by what is now a mix of existing and new institutional investors. With approximately $150.6 billion in assets as of 30 September 2013, Ally operates as a bank holding company.
