Ally Financial Files IPO, US Treasury Sells More Shares

Cameron Aubernon
by Cameron Aubernon
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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.

Cameron Aubernon
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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  • 87 Morgan 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.

    • See 5 previous
    • Ruggles 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.

  • Ruggles 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.

  • Ruggles 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.

  • Stanczyk Stanczyk on Mar 30, 2014

    Car websites - magasines .. should get some economy experts on their board .. ( 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 ..