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The Fed's results found Ally Financial Inc. in the weakest position in a hypothetical scenario in which the economy experienced a nosedive. Citigroup Inc. and SunTrust Banks Inc. would just barely fall short of capital minimums in such an event.
March 13 -
Bank of American Corp. and Ally Financial Inc. have agreed to make deeper principal reductions for some borrowers under the $25 billion multistate mortgage servicer settlement.
March 12 -
KBW report says Wells would be the frontrunner for Ally's profitable auto financing division, which could fetch as much as $68 billion in a sale.
February 21
NEW YORK — Ally Financial Inc., the government-owned auto lender, is making a $134 million dividend payment to the Treasury Department.
The Detroit-based company said Monday it will make the quarterly payment of $1.125 per share on mandatorily convertible preferred stock held by the Treasury as part of the lender's bailout.
Ally, which provides financing to General Motors Co. (GM) and Chrysler Group LLC dealers and customers, has paid about $5.5 billion to the government since February 2009. It still owes about $12 billion.
The company is 74% owned by the government after taking more than $17 billion in bailout funds during the financial crisis.
Ally also said it was making a dividend payment of $45 million, or $17.50 per share, on its fixed-rate perpetual preferred stock and a $22 million payment, or 53 cents per share, on its fixed rate/floating rate perpetual preferred stock.
The payments will be made on May 15.
The Treasury said Friday that Ally is one of three bailed-out firms that still owe the government money whose chief executives will have their 2012 pay frozen again. That means Ally CEO Michael Carpenter will receive $9.5 million in stock this year.
The other two firms whose CEOs' pay will be frozen are GM and American International Group Inc. (AIG).
Ally is expected to put its subprime mortgage unit Residential Capital into bankruptcy in the coming weeks as it tries to sever itself from real-estate problems that have stalled plans for an initial public offering intended to help pay back the government.
