In 2008, Ally, formerly the auto financing division of General Motors Co. (NYSE: GM), received more than $17 billion in bailout funds from the U.S. Treasury in exchange for a 74% ownership stake in Ally. Ally will have paid back about $5.8 billion of the funding by the time it makes a dividend payment next month.
The company’s mortgage subsidiary, Residential Capital (or ResCap) filed for bankruptcy in May and Ally has been trying to sell off its international assets as well in order to pay back its bailout.
Ally’s two remaining units will likely be its auto lending business and its online bank. In March the Treasury Department nudged Ally to separate the two, but so far the company has resisted the government’s hints. There was some talk at that time that GM may be interested in re-acquiring the auto lending business and now that ResCap is gone, that becomes a more active possibility.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.