US: government finally ends Wall Street bailout trouble image

According to the US Treasury, after finally divesting all of the remaining shares it held in ALLY, the ex-financial division of General Motors, the United States government has ended the 2008 bailout of US banks and automakers.

Formerly known as GMAC, Ally Financial saw the US Treasury making last week deals to sell off around 55 million shares worth $1.3 billion as the department arranged the sellout to take advantage of the strong pricing seen recently. This marks the end of an important chapter in the history of the US economy – after the government had to use public funds back in 2008-2009 to save automakers and banks from total collapse. The host of financial institutions and both automakers General Motors and Chrysler had taxpayers using $426 billion under the Troubled Asset Relief Program signed into law by former President George W. Bush.

The TARP program has not been closed down yet, as it continues to use money to support housing programs and although taxpayers have recovered most of the money invested – they did lose big on the automakers, though compensating in large part with the financial sector bailout. Saved back in 2009, Chrysler Group LLC is now FCA US, as it merged into the seventh-largest automaker together with Italy’s Fiat SpA to form Fiat Chrysler Automobiles NV.

Via Reuters