Ally Financial, the former G.M.A.C., said Wednesday that it had repaid the last of the debt it had borrowed in response to the financial crisis under a Federal Deposit Insurance Corporation program.
Ally, which became a bank holding company after the 2008 crisis, said it had repaid $4.5 billion in debt that was guaranteed by the F.D.I.C. under the Temporary Liquidity Guarantee Program. Ally had repaid another $2.9 billion of debt guaranteed under the program on Oct. 30.
Under the program, banks and other financial institutions issued the debt themselves while the F.D.I.C. guaranteed it. That guarantee is set to expire at the end of this year, said an F.D.I.C. spokesman, David Barr. Dozens of banks participated in the program, and most of the debt has matured leading up to the end of the guarantee.
Jeffrey Brown, Ally's senior executive vice president for finance and corporate pla nning, said that the debt repayment was “an important milestone for Ally as we continue our plans to exit the government support programs utilized during the financial crisis.â€
Ally's predecessor, the General Motors Acceptance Corporation, staved off collapse after a $17.2 billion government infusion. Many of its problems stemmed from bad mortgages in its Residential Capital, or ResCap, unit. That unit filed for Chapter 11 bankruptcy in May.
The Treasury Department still holds a 74 percent stake in Ally. It also holds $5.9 billion worth of convertible preferred securities and has recouped about $5.8 billion of its investment.
