WASHINGTON (AP) — The Treasury Department announced Thursday it plans to sell 410,000 shares of Ally Financial for $3 billion as part of its ongoing effort to recoup the costs of the $700 billion financial bailout.
The shares will be offered in a private offering at $7,375 each.
After the completion of the stock sale, the department said the U.S. government will have recovered about $15.3 billion, or 89 percent of the $17.2 billion it provided to Ally during the financial crisis. The government will still hold about 37 percent of the bank holding company's stock.
Ally Financial received a total of $17.2 billion in government support during the financial crisis. Ally, based in Detroit, makes loans to GM customers and finances dealer inventories. The government first bailed out the company, then known as GMAC Inc., in late 2008 as part of the Bush administration's aid to the auto industry. The Obama administration provided additional funding in May and December 2009.
The company said in a statement the sale is a key step in the company's plan to repay U.S. taxpayers in full for the money it received from the government bailout fund, the Troubled Asset Relief Program.
"These actions, coupled with the strength of our ongoing business, position Ally to complete its plans to exit TARP and to continue to build upon our thriving franchises," Ally said in a statement.