Ally Financial to pay government $5.2B for preferred stock

DETROIT • Auto financing and banking company Ally Financial took a big step toward exiting U.S. government ownership Tuesday, announcing a deal to pay taxpayers $5.2 billion for preferred stock granted in a 2009 bailout during the financial crisis. Ally, the former financing arm of General Motors Co., had to be rescued when the economy and auto industry nosedived, with the government spending $17.2 billion to save the company and keep auto loans coming. Under the deal, Ally also will pay the gov...

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