Ally Financial has officially exited the Troubled Asset Relief Program after the U.S. Treasury sold its 54.9 million shares of Ally common stock for $23.25 per share, according to a press release from Ally today.
“This marks another major milestone in Ally’s journey,” Ally Chief Executive Michael A. Carpenter said in the release. “We are appreciative of the investment the U.S. Treasury made in Ally and their understanding of how important available financing was to the U.S. auto recovery.”
Ally originally entered TARP in Dec. 2008 and received $17.2 billion of the $82 billion originally allocated by Congress to the Treasury as part of an effort to stabilize and strengthen the U.S. auto industry. To date, the Treasury has received $19.6 billion from Ally.
Since receiving the investment from the Treasury, Ally financed 7.4 million vehicles to consumers in the U.S. through its auto dealer network, which is currently 16,000 dealers strong, according to Ally. This represents, Ally said, about one in every 12 new vehicles sold to U.S. consumers during this time period. The company also financed nearly 23 million vehicles for more than 6,500 dealers’ inventory since receiving the investment.
In a recent report from Experian Automotive, released in early December, Ally was named the largest auto lender in the U.S. According to the report, the Top 20 lenders in the U.S. combined for 47.9% of all retail auto loans in the third quarter, with Ally accounting for 5.6%, up from 5.0% in the previous quarter
“Today,” Carpenter said. “Ally stands as a stronger and more focused financial services company that is dedicated to continued progress in the future.”Like This Post