By on March 28, 2014

Ally_Financial

Three years in the making, Ally Financial — formerly GMAC — has filed for an IPO that could net as much as $2.7 billion for the United States Treasury.

Bloomberg reports the income generated from the IPO — expected to be priced between $25 and $28 when the offering debuts April 9 — will go directly to the Treasury upon selling 95 million shares of the financial company, according to a filing with the Securities and Exchange Commission this week.

Ally originally intended to go public at this time in 2011, but shelved the plans in order to set the stage for its mortgage arm, Residential Capital LLC, to enter into bankruptcy, which Automotive News says was not formalized until late last yearm at the same time General Motors sold their remaining 8.5 percent stake in Ally.

After the dust settles, the Treasury will still have anywhere between 14 percent to 17 percent ownership, down from the 37 percent stake the agency currently owns. For their part, Ally has repaid $15.3 billion — or 89 percent — in TARP funds to the federal government.

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37 Comments on “Ally Financial Files IPO, US Treasury Sells More Shares...”


  • avatar

    I’m gonna buy some.

    And I recommend you guys with Scottrade accounts BUY MARIJUANA shares.

    CANN and VAPE Already made my pennies back 100 fold.
    youtu.be/aIJDcbKDcZ8

    • 0 avatar
      28-Cars-Later

      This would have been great advice in December. VAPE looks to be a little volatile right now, down 15.19% today. CANN looks to be a little steady, but no EPS are available. I’d feel better investing in a long with some more financial data.

      VAPE keeps heading down…

      • 0 avatar
        gtrslngr

        You’re a fool about to be parted from his money if you invest in either 420 … which is illegal to do btw and subject to Federal penalties … [ wait till you try and cash out and report it to the IRS .. which you must ... suffice it to say you just tagged yourself to each and every Federal authority from the IRS right down to the DEA ... congratulations ... you\'re now a \' Person of Interest \' ]

        As well as Ally Financial with their multitudes of Sub Prime loans [ auto and otherwise ] .. excessively long loan terms [ 60 month + ] as well as their extreme lack of capitol in reserves

        • 0 avatar
          philipwitak

          re: “…illegal to do btw and subject to Federal penalties…wait till you try and cash out and report it to the IRS…you’re now a ‘Person of Interest’. ”

          maybe. maybe not.

          just watched a cnbc report broadcast a couple of weeks ago. harry smith interviewing some colorado capitalist who has already profited handsomely – and that guy confirmed on-air that the irs has already issued tax guidance for medical and recreational marijuana businesses to ensure appropriate filing.

      • 0 avatar

        I bought 10,000 shares of LATF for less than 0.009.
        You can still get into CBIS, HEMP, ERBB, FITX, LATF

      • 0 avatar

        I sold out of CANN at its High. Sold out of VAPE near its high. With most of my penny stocks I’m selling immediately if they hit $10, $20 or $30.

  • avatar
    David Walton

    OMG EVIL NASTY BANKSTERZ!!!!11!!!!111!!!

    • 0 avatar
      gtrslngr

      Ally doing its best to imitate Bank of America’s foibles of a few years ago [ 2008 ] And doing a darn fine job of it as well I might add . No surprise though seeing as how they’re still related to GM … Ally being the one to initiate Sub Prime auto loans in order to get some of GM’s dead stock off the lots .

      What you say gtrslngr ? Try this little experiment . Go to any BMW – Lexus – Infiniti – Mercedes – Audi dealership and claim a substandard income as well as an excessively high debt to income ratio and try to get a loan/lease . You’ll get laughed right out the door

      Do the same … oh heck … claim even less and barely have proof you exist at a Cadillac dealership and you’ll be driving off in the car of your dreams so fast your head will spin . Do the same at a Chevy/Buick/GMC dealership and they’ll send you home with two cars … and a free tank of gas

      Here we go again folks … Partying like its 2008 … all over again .. learning absolutely nothing .. from barely not even a decade ago

      • 0 avatar
        David Walton

        One major difference.

        TARP = Wildly profitable for the Treasury

        Auto bailouts = Not so much

        • 0 avatar

          I got into Ford when it was below $1.75 a share. My Uncle told me “The government will NEVER let FORD go down – put as much money as you can on FORD”

          I sold my Ford shares at $17.09 and now I’m planning to sell my TESLA when the Model X is released (or it hits $300) – and buying Marijuana shares.

          • 0 avatar

            Yes, the government was never going to allow Ford to go into liquidation. In fact, Ford took about $6 BILLION in federal “green loans,” a fact most are unaware of. Had they taken a bailout like GM and Chrysler, the Ford family would have lost their special voting and dividend producing stock. They live off of those dividends. That’s why Mullaly’s marching orders were to preserve their special position by hocking everything, including the rights to the Blue Oval.

            Sadly, I bought Ford at $4.85 instead of $1.85, but I have overall been quite pleased and continue to buy more in the $15. range. The dividend is attractive.

            Tesla is way too risky for my blood. There are way too many things that can happen that aren’t good.

        • 0 avatar
          CapVandal

          Thanks ….

          A whiff of truth about the bank bailouts.

      • 0 avatar

        RE: “Ally doing its best to imitate Bank of America’s foibles of a few years ago [ 2008 ] And doing a darn fine job of it as well I might add . No surprise though seeing as how they’re still related to GM.”

        Ally Bank is no longer related to GM. In fact, they are no longer GM’s “captive.” You seem to have GM Financial, previously Americredit, confused with GMAC/Ally Bank.

        RE: “Ally being the one to initiate Sub Prime auto loans in order to get some of GM’s dead stock off the lot.”

        Again, not true except anecdotally. GM Financial specializes in near prime/subprime.

        RE: “What you say gtrslngr ? Try this little experiment . Go to any BMW – Lexus – Infiniti – Mercedes – Audi dealership and claim a substandard income as well as an excessively high debt to income ratio and try to get a loan/lease . You’ll get laughed right out the door.:

        Wrong again. You’ll get financing through a lender properly priced for the risk. You might have to come up with more down payment and a host of documentation, but you will most likely get a loan. People through around the word sub prime like it means a guarantee of losses. Yet, lenders FLOCK to the near prime, sub prime, and BHPH space. Why? Because there is big money to be made as long as the risk is properly priced.

        RE: “Do the same … oh heck … claim even less and barely have proof you exist at a Cadillac dealership and you’ll be driving off in the car of your dreams so fast your head will spin.”

        Same as the circumstance I mentioned above.

        RE: “Do the same at a Chevy/Buick/GMC dealership and they’ll send you home with two cars … and a free tank of gas.”

        Wrong again. See above. It amazes me how no market participants become experts on these blogs.

        RE: “Here we go again folks … Partying like its 2008 … all over again .. learning absolutely nothing .. from barely not even a decade ago.”

        Again, not true. GMAC was done in by getting involved in the mortgage loan business through ResCap/GMAC Mortgage. The mortgage crisis wasn’t done in by lending to risky borrowers. It was done in by improper pricing for risk and credit default swaps issued without capital backing up the coverage to pay claims when everything went bad at once.

        For perspective: The BHPH business involves a 30% plus repossession rate. Yet, participants are making money hand over fist.

        RE: Loans over 60 months: While I’m not a big fan, used vehicle values are so strong these days that 72 and 84 months is less harmful now than it was pre-recession. I’d prefer people be put into leases or balloons than into long term finance contracts, but its an individual consumer’s choice.

  • avatar
    stuki

    With Yellen all but promising to be, if possible, an even more dependable stooge for the financial industry than the halfwits preceding her, dodgy financial outfits may not be such a bad investment right now; relatively speaking.

    • 0 avatar

      The previous “half wit” scored 1590 out of 1600 on his SAT. What did you score? The previous “half wit” has a Ph.D. degree in Economics from the Massachusetts Institute of Technology.

      People get quite bold on these blogs given the fact they can hide behind their anonymity.

      • 0 avatar
        ajla

        “halfwit” is a poor term, but in stuki’s defense he is not trying to be the chair of the Federal Reserve. Blaine Gabbert is an incredible athlete compared to me, but that doesn’t make him a good NFL quarterback.

        A high SAT score or impressive college degree also doesn’t mean that one can’t be influenced by powerful people.

      • 0 avatar
        darkwing

        Because no one’s ever called a political appointee a halfwit in polite conversation?

        Credentials, of course, are not qualifications. A PhD from a decent department of a decent non-Ivy League school is a good start. But SAT scores? Seriously? C’mon.

        • 0 avatar

          Because I object to people referring to a dedicated public servant as a “nitwit” ESPECIALLY by someone who doesn’t begin to understand the issues. 1590 on the SAT is a level of intelligence reached by only a miniscule percentage of the population.

          Bernanke is influenced by what powerful people? Who influenced Alan Greenspan? Are these people claiming to actually have information or are they just throwing around wild and ignorant speculation?

          • 0 avatar
            Onus

            You must have taken a SAT I’m not aware of. That was the average score when i took it in 2010.

            Personally I’m not huge on that test and neither are colleges these. My sisters college didn’t require her to submit SAT scores and she didn’t even take it.

            I went to community college so i didn’t end up using my scores.

          • 0 avatar

            Bernanke score 1590 out of a possible 1600. That had never been done and to my knowledge hasn’t since.

          • 0 avatar
            jkross22

            Your implication is that intelligence equates to judgement.

            The facts don’t support your opinion.

  • avatar
    87 Morgan

    I think the bigger issue with Ally is their long term plan. Is it banking, dealer financial services, insurance, some none or all? They are not holding ground in the floor plan space as they are expensive, mostly due to their lack of capital. Their insurance business is legacy GMPP business which goes back to GM in 2016. With less floor planning, less insurance revenue coming I can’t see this new entity as viable.

    Add the bloat, although they have been shedding head count recently, and what you end up with is a company that brings little to the table that is not already represented quite by other players in the market.

    • 0 avatar

      Yes, they no longer have their captive arrangements. They have no brick and mortar banks as do Chase, Wells, etc. I have no clue what they will do going forward. Without an understanding of their business plan no way would I buy their stock.

      • 0 avatar
        Hillman

        Brick and mortars are not needed anymore. Especially now days it might even be a good thing that a bank does not have a bunch of properties that serve little use.

        • 0 avatar

          Brick and mortar isn’t needed any more?

          Sure, if you want to limit yourself to those who are comfortable doing everything over the web. That might be a business model for 20 years down the road, but it is a loser in our current world for a mainstream. Ally isn’t a start up.

  • avatar
    87 Morgan

    Oh and ruggles, I couldn’t agree more with your comments.

    Get laughed out of the store if you have rough credit and happen to be standing in a BMW, Toyota, Lexus etal…..what those stores only sell to good credit? Stop it. Only bad credit people drive GM?

    Gtrslngr ever heard of chase custom, Santander, pelican, ACA I could go on. They are in the shelf in all the stores buying paper.
    Lexus dealers, BMW dealers like all the rest will work every deal to get any customer on the road in a new or used car from their inventory with any bank they can find. They are retail operations not financial planners.

    • 0 avatar
      highdesertcat

      Not so fast. While the sales person is jawing your ear off on the lot or the show room floor, someone in the back office is running a credit check on you after they made a copy of your drivers license.

      • 0 avatar
        sunridge place

        How does a dealer run a credit check based on a name, address, and drivers license #? Is that how your brothers ran their dealerships? Just curious how that can happen.

        Always love hearing from you here HDC…I spend some time out in El Paso these days and decided to be nicer to you in case I’m ever lost out in the desert and need help….you seem to be the guy if I’m ever SOL out by the gas n sip. I’ll even put up with your long stories about your incredible Tundra if you can save me.

        • 0 avatar
          highdesertcat

          Read my reply to 87 Morgan. And, yes! That’s how most dealerships are run because you don’t want to waste time on the looky-loos. Only the genuine potential buyers need apply.

          I’m surprised you even know where El Paso, TX, is. Just run up US54 North out of El Paso and you will pass right by my property as you blast past the Dog Canyon Road, neither a gas nor sip to be seen for miles around.

          As for my long stories, here’s a clue: skip over them whenever you see my handle above the comment.

          BTW, you wouldn’t need to be saved if you knew what you were doing before you got started. That said, I’ve given a lot of people rides after they got stranded on US54, in either direction. All of them due to the improper application of the 7Ps.

      • 0 avatar
        87 Morgan

        Unless you the customer sign the credit application no one is pulling credit.

        HDC either you only shop at or work at a dirt bag establishments. Go to carmax or any other chain and you will be fine.

        • 0 avatar
          highdesertcat

          The dealership goes to the MVD/DMV site of the state that issued the drivers license to determine your status. If you have ever visited such a site you will find that there is a wealth of information on the driver.

          For good measure, the dealership also Google’s the person’s name verified by that drivers license to pick up additional data including his/her residence ownership status, property taxes, etc, and a Google picture of the house at the address listed on the drivers license.

          This is perfectly legal and you can do all this by yourself for yourself. So can anyone else. It takes less than a minute. I’ve done it myself to see what information is out there, and it is scary!

        • 0 avatar

          Actually, there are legalities that allow a business to pull your credit history if you are engaged in a negotiation that involves financing. This is called a “soft pull” and there might be some folks who wish I’d never mentioned this. I don’t like it and I’d like to see it changed.

          HDC has also pointed out some facts of life in the world of business.

          However, with all of the fraud going on dealers have the right to protect themselves. For some reason no one here talks about the amount of fraud perpetrated on dealers. Guess who ultimately pays for that.

  • avatar

    @ HDC – Might it be possible that you might be a brother of my my dear friend and business partner? You know, the one who Clint Eastwood baby sat for? No names here.

  • avatar

    RE: “Your implication is that intelligence equates to judgement. The facts don’t support your opinion.”

    No implication. We were lucky to have Bernanke in the job.

  • avatar
    stanczyk

    Car websites – magasines .. should get some economy experts on their board .. (..to chase that bank§ters tricks ..)

    Car manufacturers are today more in financial-bu$iness(CEO’s with bonu$es like bankster$) than in car-bussiness .. (yeah, we will give you good-ceredit, and bad-car .. )

    More ‘global products\'(poor designs , platform-sharing.. etc ..) and marketing-brainwashing .. welcome to modern moto-world ..


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