Ally Leaves Government Ownership, US Treasury Exits Auto Industry
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.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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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.
Are the industry and the country better off now than 6 years ago?
Only three comments? I remember a lot of loud, angry voices back in 07/08 that sure are quiet now...
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.