Ally Financial Files IPO, US Treasury Sells More Shares

by Cameron Aubernon

March 28th, 2014 9:04 AM

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ally financial files ipo us treasury sells more shares

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.

#AllyFinancial #IPOs #NewYorkStockExchange #StockMarkets #Trading #UnitedStatesTreasury

Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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11 of 37 comments

87 Morgan on Mar 28, 2014

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.

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- Highdesertcat on Mar 28, 2014
  
  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.
  
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- Sunridge place on Mar 29, 2014
  
  @highdesertcat 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.
  
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- 87 Morgan on Mar 29, 2014
  
  @highdesertcat 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.
  
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- Highdesertcat on Mar 29, 2014
  
  @87 Morgan 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!
  
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- Highdesertcat on Mar 29, 2014
  
  @sunridge place 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.
  
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- Ruggles on Mar 29, 2014
  
  @87 Morgan 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.
  
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Ruggles on Mar 29, 2014

@ 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.

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- Highdesertcat on Mar 29, 2014
  
  LOL! Dave, let's just leave it at that. I know you and you know me.
  
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Ruggles on Mar 30, 2014

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.

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Stanczyk on Mar 30, 2014

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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