The U.S. has finally sold off its remaining major investment in the Troubled Asset Relief Program, six years after beginning to bail out auto companies, banks and financial institutions in the depths of the Great Recession.
The Treasury Department announced Friday that it will sell its remaining stake in Ally, the former financing division of General Motors, capping the end of its last major TARP investment and the auto rescue program.
Treasury touted that selling the nearly 55 million shares netted $1.3 billion for taxpayers, and $19.6 billion overall after spending $17.2 billion on Ally. However, the government’s overall losses on the $85 billion auto industry bailout were about $10 billion, the Detroit News reports.
After former President George W. Bush signed TARP into law in October 2008, the U.S. poured hundreds of billions of dollars to stabilize banking institutions, AIG, the auto industry and families facing foreclosure.
“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.”