Ally Sale Leaves Taxpayers With $9.3 Billion Loss on Auto RescueIan Katz
U.S. taxpayers lost $9.3 billion on the government’s bailout of auto companies following the Treasury Department’s sale of its remaining stake in Ally Financial Inc.
The Treasury took in $70.4 billion from the rescue of companies including General Motors Co., Chrysler Group LLC and auto lender Ally after spending $79.7 billion of taxpayer funds, according to department data released today.
The U.S. government disposed of its remaining $1.28 billion stake in auto lender Ally Financial Inc. this month, resolving the last big bailout from the emergency government program to stem the 2008 financial crisis. The U.S. had owned as much as 74 percent of Ally after a $17.2 billion rescue.
“This program was a crucial part of the Obama administration’s effort to stop the financial crisis and protect the economy from slipping into a second Great Depression,” Treasury Secretary Jacob J. Lew said Dec. 19. “The program worked.”
Overall, the government received $441.7 billion in repayments and other income from the Troubled Asset Relief Program bailouts that also included financial firms Citigroup Inc., Bank of America Corp. and American International Group Inc. That amount was $15.1 billion more than the $426.6 billion that was spent, according to the Treasury data.