In a story Feb. 3 about Ally Financial, The Associated Press erroneously reported that the U.S. government made $18 billion from its bailout of Ally Financial.
The government invested $17.2 billion in Ally during the financial crisis and received shares in exchange. It has received over $18 billion from selling the majority of its stake, giving it a profit of more than $1 billion on its investment.
A corrected version of the story is below:
Auto financing company Ally Financial says that Michael Carpenter, who became the company's CEO about a year after Ally was bailed out by the federal government, is retiring and stepping down from the board of directors.
Jeffrey Brown, 41, was named after the markets closed Monday as the company's new CEO, effective immediately. He has been president and CEO of Ally's dealer financial services unit for almost a year.
Ally Financial Inc. is the former financing arm of General Motors. The government invested $17.2 billion in Ally during the financial crisis, and received stock in exchange. As of October, the government had sold Ally shares for over $18 billion, generating a profit of more than $1 billion on its original investment.
Carpenter, 67, became the company's CEO in November 2009.
The Detroit-based company said in December that it received a subpoena from the U.S. Department of Justice related to subprime auto loans, or loans made to borrowers with questionable credit histories.
Ally went public in April. Its shares rose 47 cents, or 2.5 per cent, to $19.55 in late afternoon trading Tuesday.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.