Ally Financial, the bank holding company formerly known as GMAC, is still a major part of the United States federal government investment portfolio in the five years since it was bailed out at the start of the Great Recession. Yet, it may be able to soon divest its ownership in part due to General Motors selling their remaining shares.
GM announced Wednesday that they would sell off their remaining 132,000 shares — or 8.5 percent of the total shares available — of the finance company through a private placement. The action would clear the way for Ally to begin final preparations for their long-awaited IPO to the investing public. In turn, the federal government could sell part if not all of their ownership, currently holding at 64 percent.
When the IPO will be offered is still unknown, though both GM and Ally are hoping rising interest in the latter by investors will light the path toward complete freedom from government ownership. In the meantime, GM will net $900 million from the private placement.