Thursday, November 29, 2012

GM purchases portion of its former auto-lending outfit

General Motors (GM) last week started buying out Ally Bank’s auto lending operations in an effort to reverse months of lagging growth.
Ally Financial Inc., formerly known as GMAC, is GM’s former auto-lending arm. Although it split from the automaker in 2006, it still garnered $17 billion in taxpayer money during the auto bailout.
GM announced on November 21 its repurchase the bank’s lending operations in Europe and Latin America at a cost of $4.2 billion. Taxpayers own about 75 percent of Ally, which has only repaid $2.5 billion of its bailout. GM still owes U.S. taxpayers nearly half of its $50 billion bailout.

Read more: http://freebeacon.com/a-european-ally/

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