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Ally, formerly known as GMAC, received a total bailout of about $17.2 billion during the financial crisis. It’s not clear how much of the trust preferred securities the Treasury plans to sell, or when the sale will take place. Proceeds raised from the sale of the securities, which were received in 2009, would represent a “partial recovery” on the government’s investment, the Treasury said.
The sale announced Tuesday does not include the Treasury’s $5.9 billion of mandatory convertible preferred stock in Ally or any of the U.S.’s 74% stake in Ally’s common stock.
Ally is expected to make an initial public offering later in 2011.