Auto finance company to repay U.S. with $5.2B in stock
Auto financing company Ally Financial will pay the U.S. government more than $5.2 billion to buy back preferred stock that the government got for bailing out Ally in 2009.
The move is a likely step by Ally toward exiting government ownership. Taxpayers also own 74 percent of Ally's common stock. All the shares were granted in exchange for a $17.2 billion bailout of the lender.
Ally also will pay dividends plus $725 million for the government to give up rights to convert the preferred stock to common shares.
With the move, Ally will have repaid roughly $12 billion. That means the government is still about $5.2 billion in the hole on the Ally deal.
Ally also says it will sell nearly 167,000 common shares to investors for $1 billion.
Sarra Sounds Off, Season 3, Ep 5: Top football teams in action and Nassau soccer playoff picks Gregg Sarra sounds off on Wantagh vs. Bethpage and Ward Melville vs Sachem North, plus Michaeil Sicoli has his Nassau soccer picks, an update on the high school fantasy football standings and the plays of the week.
Sarra Sounds Off, Season 3, Ep 5: Top football teams in action and Nassau soccer playoff picks Gregg Sarra sounds off on Wantagh vs. Bethpage and Ward Melville vs Sachem North, plus Michaeil Sicoli has his Nassau soccer picks, an update on the high school fantasy football standings and the plays of the week.
