WASHINGTON (AP) — The Treasury Department says it has sold trust preferred securities the government held in Ally Financial for $2.7 billion, the latest step in its efforts to recoup the costs of the $700 billion financial bailout.
The department also hopes to get back more taxpayer money through an initial public offering of the former General Motors finance arm.
The government owns most of the company through its holdings of $5.9 billion of preferred stock and 74 percent of the company’s common stock. The public offering is expected to occur in the second half of this year.
Ally Financial received $17.2 billion in government support during the financial crisis. It has not paid back any of that support, although it has made $2.19 billion in dividend and interest payments.
