US Treasury to recoup more bailout funds - KWWL - Eastern Iowa Breaking News, Weather, Closings

US Treasury to recoup more bailout funds

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WASHINGTON (AP) -- The US Treasury Department says it has sold trust preferred securities the government held in Ally Financial for $2.7 billion.  It's the latest step in the effort to recoup the costs of the $700 billion financial bailout.

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.

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.

 

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