Ally Financial said Wednesday that it has repaid $2.9 billion of debt issued under the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program. its subsidiary Ally Bank is a regular auto ABS issuer.
The crisis-era stabilization program gave Ally access to another source of liquidity when banks had few options at the height of the financial crisis. Debt was issued to Ally on Oct. 30, 2009, and the $2.9 million portion was due on Tuesday.
Its balance of $4.5 billion under the TLGP will be repaid in December, said Ally, a provider of auto financing and other financial services. The Treasury Department owns 74% of Ally.
The liquidity was “a key contributor in Ally being able to continue offering financing options for thousands of auto dealers across the U.S. and millions of their customers during the financial crisis,” said Jeffrey Brown, Ally’s senior executive vice president of finance and corporate planning.