Ally Financial said it repaid the entire debt offered by the Federal Deposit Insurance Corp’s Temporary Liquidity Guarantee Program.
Ally Financial, the former GM auto lending arm, said it repaid $4.5 billion in debt guaranteed by the Federal Deposit Insurance Corp’s Temporary Liquidity Guarantee Program and another $2.9 billion in October. Ally Chief Executive Michael Carpenter said the company is trying to repay several bailouts spurred by losses during the financial crisis which affected industry more than two years ago.
Earlier this year ResCap filed for bankruptcy, while Ally Financial managed to close an agreement to sell its international operations in a bid, to be able to repay taxpayers quickly. Ally has also paid back $5.8 billion out of the $17 billion it received under the U.S. government’s Troubled Asset Relief Program. After the US Treasury announced its plans to sell the rest of GM shares, Ally is the only major company that still owes the government under TARP.
“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,” Jeffrey Brown, Ally’s senior executive vice president of finance and corporate planning, said in a statement.