Auto program helped save auto industry, more than 1 million jobs
WASHINGTON – The U.S. Department of the Treasury today announced that it agreed to sell all of its remaining 54.9 million shares of Ally Financial Inc. (Ally) common stock, exiting the last major Troubled Asset Relief Program (TARP) investment and winding down the Auto Industry Financing Program. The shares were sold at $23.25 per share, recovering $1.3 billion to taxpayers.
“The Auto Industry Financing Program helped save the auto industry, more than one million jobs, and prevent a second Great Depression,” said Treasury Secretary Jacob J. Lew. “Thanks to President Obama’s leadership, our economy has rebounded from the depths of the financial crisis and is now creating jobs at the fastest pace since the 1990s. There is more work to do, but as we exit the last major financial investment, it’s important to take stock of the progress we have made, and the critical role TARP and the Auto Industry Financing Program played in getting us to this point.”
In total, taxpayers recovered $19.6 billion on the investment, roughly $2.4 billion more than the original $17.2 billion investment in Ally, formerly GMAC. Including today’s proceeds, taxpayers have recovered $441.7 billion on TARP investments including the sale of Treasury’s AIG shares, compared to $426.4 billion disbursed.
For details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link.
A timeline of key events related to Treasury’s investment in Ally is available here.