The Federal Reserve has approved Ally Financial Inc.’s plan to repay a big part of its government bailout.
Ally said Friday the Board of Governors at the Federal Reserve didn’t object to the company’s revised Comprehensive Capital Analysis and Review, or CCAR plan, which was resubmitted in September.
Acceptance of the CCAR plan satisfies a key closing condition related to the previously announced private placement of Ally common stock, as well as the repurchase of all the Mandatorily Convertible Preferred securities held by the U.S. Treasury and payment for the elimination of the share adjustment provision.
A private placement transaction, as well as transactions related to the U.S. Treasury repurchase and payment of $5.9 billion, will be completed in the coming days. Once complete, Ally will have repaid the U.S. Treasury $12.3 billion.
Ally expects to receive about $1.3 billion in connection with the private placement of its common stock. The private placement transaction was increased 50,000 shares ― or $300 million ― on Nov. 15.
