Treasury Announces Plan to Sell Additional Ally Financial Common Stock

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8/14/2014

WASHINGTON – The U.S. Department of the Treasury today announced that it would continue to wind down its investment in Ally Financial (Ally) by selling additional shares of common stock through its first pre-defined written trading plan. Treasury currently holds 75,065,340 shares, or approximately 16 percent of Ally common stock.   
 
“Treasury’s sale of additional Ally common stock is part of our continuing effort to wind down the Troubled Asset Relief Program (TARP),” said Chief Investment Officer Charmian Uy.  “We will prudently exit the remaining Ally investment, balancing speed with maximizing returns for taxpayers.”
 
As part of Ally’s initial public offering in April, Treasury sold 95,000,000 shares of Ally common stock at $25.00 per share for $2.375 billion dollars in proceeds to taxpayers.  The underwriters of the IPO later exercised their option to purchase 7,245,670 additional shares at the IPO price, recovering an additional $181 million for taxpayers. Taxpayers have now recovered approximately $17.8 billion on the Ally investment, roughly $650 million more than the original $17.2 billion investment. 
 
To date, taxpayers have recovered a total of $439.8 billion on TARP investments including the sale of Treasury’s AIG shares, compared to $424.8 billion disbursed.  For more details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link.
 
There will be opportunities for smaller broker dealers, including women and minority-owned broker dealers, to participate in the sale of Treasury's remaining Ally common shares pursuant to the plan.
 
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of Ally common stock.
News Source : Treasury Announces Plan to Sell Additional Ally Financial Common Stock
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