According to Ally Financial Inc.’s CEO, the company will repay the government by 2014 thanks to its auto-finance business.
CEO Michael Carpenter explained that Ally will be able to make a large payment this year. As the second-largest remaining investment by the U.S. Treasury’s bailout fund, Ally still has $14.6 billion outstanding from the Treasury’s Troubled Asset Relief Program.
“We are 100 percent confident that we can repay the American taxpayer completely,” Carpenter said. “Whether that’s this year or next year, I don’t know. But it’s in that time frame.”
In an effort to increase company focus on autos and its online retail bank, Ally has been selling assets outside of the United States as well. Its auto unit has also expanded, providing used, leasing and subprime financing offerings early this year, before agreements with General Motors and Chrysler expire.