Ally Pays Back $2.9 Billion in FDIC-Backed Debt

“(Reuters) – Ally Financial Inc, the U.S. auto lender 74 percent owned by the U.S. government, on Wednesday said it has repaid $2.9 billion in debt issued under a financial-crisis-era program designed to bolster confidence in the banking system.

The former auto lending arm of General Motors Co paid back $2.9 billion in debt guaranteed by theFederal Deposit Insurance Corp’s Temporary Liquidity Guarantee Program.

The debt, issued on Oct 30, 2009, came due on Tuesday. The lender plans to repay the remaining $4.5 billion in debt it issued under the program in December.

Other financial institutions such as Bank of America Corp have been repaying debt issued under the program.”