The U.S. Department of the Treasury announced that it plans to continue selling its shares of common stock in Ally Financial, which will further reduce the government's stake in the Detroit-based auto lender and recover more TARP investment funds for taxpayers. Treasury now holds 75 million shares of Ally common stock, which computes to about 16 percent. Treasury began selling off its common stock in Ally back in April, when Ally's initial public offering price of $25 per share resulted in the sale of 95 million shares that netted almost $2.4 billion in proceeds for taxpayers.
Following the sale of those 95 million shares in April, IPO underwriters later elected to buy an additional 7.24 million shares of Ally common stock at the IPO price of $25 per share, which recovered taxpayers another $181 million dollars. To date, about $17.8 billion of the government's original investment through TARP to assist Ally has been recovered for taxpayers – which is approximately $650 million more than the original $17.2 billion investment.Taxpayers have recovered a total of $439.8 billion from TARP investments to date.
According to the latest Residential Price Index report from FNC, home prices are still on the way up. FNC found that despite continued signs of leveling off in home price appreciation, U.S. home prices were up another 0.8 percent from May to June and 2.3 percent throughout the second quarter. According to FNC, whose data excludes distressed properties, year-over-year growth is decelerating as expected. The rate of growth in price appreciation is down to 8 percent; in February, the rate was at 9.4 percent.