Treasury converting $5.5 billion of Ally equity
WASHINGTON (MarketWatch) — The Treasury Department said late Thursday it’s converting $5.5 billion of preferred stock in Ally Financial — the lender formerly known as GMAC — into common stock. The move increases Treasury’s common equity stake in Ally to 74% from 56%, and the conversion is being done at 1 times book value as of Sept. 30. The Treasury had received $11.4 billion in Ally preferred stock as part of the Troubled Asset Relief Program. Treasury invested a total of $17.2 billion in Ally and has received $2.0 billion in dividends and interest in return to date.
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