Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: May 16, 2012

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Ally Financial, the former financing branch of General Motors Co (GMAC), said on Monday that it will sell some of its international operations in order to repay the United States Government $12 billion it received in bailout money. In the same announcement, however, Ally claimed it “absolutely not” sell its U.S.-based auto loan lending business, according to Reuters.

As part of its liquidation process, Ally declared bankruptcy for its mortgage unit called Residential Capital, or ResCap. ResCap filed Chapter 11, effectively bringing all of the company’s home equity loans to a halt.

“We believe that combination of these actions is a very, very strong result for Ally and makes the prospects for the company substantially brighter,” said Michael Carpenter, Ally’s chief executive, in response to the company’s closures, according to a recent article by Market Watch.

Analysts seem to agree with Carpenter, agreeing that the selling of international businesses will leave Ally in a great position to manage their auto loan financing industry here in the United States.

“My perspective is that we’ve kind of unlocked a box and… created [options] and opportunity as a result of these steps,” said Carpenter.

To further bolster the morale of investors, Carpenter continued to say, “From a credit point of view, this is going to be as strong of a company as there is in the banking business. I don’t think there is a better credit environment than auto loans in the U.S.”

The company was rebranded from GMAC in 2009, and since that year it has assumed the name Ally Bank. Its original bailout from the United States taxpayers amounted to $17 billion. Since it received money from the government, the lender has repaid roughly one-third of the bailout.

Ally is the preferred auto loan lender of the exotic brand Maserati in North America.