Ally pays off remaining debt issued under FDIC program
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DETROIT (Reuters) -- Ally Financial Inc., the U.S. auto lender now 74 percent owned by the U.S. government, said it has repaid its remaining debt issued under a financial-crisis-era program designed to bolster confidence in the banking system.
The former auto lending arm of General Motors said it paid back $4.5 billion in debt guaranteed by the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program. It repaid another $2.9 billion in debt issued under the program in October.
Ally continues to owe the government for a series of bailouts under the Troubled Asset Relief Program. Of the $17 billion it received, it has paid back $5.8 billion, including dividends.
PRESS RELEASE: Ally Financial Repays Remaining $4.5 Billion of Debt Issued Under TLGP
DETROIT, Dec. 19, 2012 -- Ally Financial Inc. (Ally) today announced it has repaid the remaining $4.5 billion in debt issued under the FDIC's Temporary Liquidity Guarantee Program (TLGP), and in doing so, effectively exited the program. The company issued this debt on June 3, 2009, with a maturity date of Dec. 19, 2012.
"Repayment of the remaining debt issued under the TLGP marks an important milestone for Ally as we continue our plans to exit the government support programs utilized during the financial crisis," said Ally Senior Executive Vice President of Finance and Corporate Planning Jeffrey Brown. "Ally has made significant progress this year in reducing risks, gaining momentum in our core automotive services and direct banking franchises, and successfully executing strategic actions that will further strengthen the company going forward."
Ally repaid $2.9 billion of debt guaranteed under the TLGP on Oct. 30, 2012.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and online checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $182 billion in assets as of Sept. 30, 2012, Ally operates as a bank holding company.
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