The United States Treasury Department will reduce its stake in Ally Financial Inc. by selling shares on the open market, the department said in a statement. The Treasury Department currently owns 75.1 million shares in Ally, good for a 16-percent stake.
The US owned up to 74 percent of Ally after bailing out the company via the Troubled Asset Relief Program crafted to help shore up the auto market during the financial crisis. However, US Treasury reduced its ownership of Ally after holding an IPO that sold the shares at $25.
Charmian Uy, chief investment officer of the Treasury Department, said in the statement that the US will “prudently exit” the remaining Ally investment, “balancing speed with maximizing returns for taxpayers.”
The US made $17.2 billion in investments in Ally and has so far recovered around $17.8 billion through asset sales, the statement Treasury.
Gina Proia, a spokeswoman for Ally, said in an e-mailed statement, that the disclosure represents another step toward “ultimately exiting” the Troubled Asset Relief Program and delivering additional value to its shareholders, including the US taxpayer.
Ally chief executive Michael Carpenter remarked in February that it was possible for the lender to exit TARP by the end of 2014, or before that.