Watchdog Criticizes Treasury for Ally Financial’s Slow Repayment PlanTweet
January 30, 2013
Most of the largest companies that received billions in federal bailouts have repaid the government but Ally Financial, a major auto lender, still owes the government $11.4 billion.
In a report released today, the Special Inspector General for the Troubled Assets Relief Program (SIGTARP) criticized the Treasury Department for being too slow in getting Ally to repay the government.
From a Washington Post story,
The George W. Bush administration floated the first round of aid to Ally in December 2008 through the auto program that propped up GM and Chrysler. Chrysler settled its tab in 2011 — although Treasury lost $1.9 billion on the investment. The federal government, meanwhile, is in the process of selling off its remaining shares of GM.
Treasury required GM and Chrysler to submit a viability plan for resolving their liabilities, but it never pressed Ally to do the same, according to the report. [Christy Romero, special inspector general for TARP,] said the lack of a plan for addressing the subprime mortgage loans may be the reason why Ally has been unable to repay the government.
At the time of publication, Andre Francisco was the Online Producer for the Project On Government Oversight.
Topics: Financial Sector
Authors: Andre Francisco
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