US Treasury raises $2.38B in Ally stock sale
US Treasury says it raised $2.38 billion in sale of 95 million shares of Ally Financial
Associated Press
2014-04-10 06:42 AM

WASHINGTON (AP) -- The Treasury Department says it has sold 95 million shares of its stock in Ally Financial as part of the U.S. government's continuing effort to recoup the billions of dollars spent bailing out companies during the 2008 financial crisis.

Treasury says it got $25 per share in the initial public offering which raised $2.38 billion. The sale brought the amount it has recouped from its bailout of Ally to $17.7 billion, slightly more than the $17.2 billion the government had put up.

The former financing arm of General Motors ran into trouble by making bad bets on subprime mortgages.

With the stock sale, the government's ownership of Ally's common stock will drop from 37 percent to about 17 percent. Further sales of government-owned stock are expected in coming months.

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