Ally Financial Closer To Freedom Through Upcoming Stake Cut

Cameron Aubernon
by Cameron Aubernon

Former General Motors lending subsidiary Ally Financial is one step closer from leaving government oversight, thanks to the United States Treasury cutting its stake in the company.

Bloomberg reports the Treasury will sell its stake of 75.1 million shares on the open market, the first divestiture since April 2014’s IPO. Though no word on the size or timeline regarding the cut was given, Treasury CIO Charmian Uy says the move will be made with “maximum returns for taxpayers” in mind.

Ally representative Gina Proia added that the agency’s stake cut “was another step toward” exiting government ownership under the TARP program, “delivering additional value to shareholders, including the U.S. taxpayer” in so doing.

At its peak, the Treasury owned 74 percent of the lender, with the U.S. investing $17.2 billion and receiving $17.8 billion after asset sales.

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.

More by Cameron Aubernon

Join the conversation
  • SexCpotatoes SexCpotatoes on Aug 16, 2014

    Get out now, while the gettin' is good! Any information on if the government stands to take a loss on the shares they're dumping all at once? I mean things must be about to hit the fan in the subprime market if even the Government recognizes they need to be out of it yesterday!

    • Ect Ect on Aug 16, 2014

      According to Ally, the Treasury paid $17.2 billion for its stake in the company, and has so far recovered $17.8 billion. For the TARP program as a whole the Feds spent 424.8 billion, and have received back $439.8 billion. Treasury has been trying to exit Ally since 2011 - this is not a rush decision. Ally hopes their remaining stake will be sold by the end of this year, which is far from "yesterday".

  • Jeff Semenak Jeff Semenak on Aug 17, 2014

    Sell Ally short. Like GM, they must have undisclosed problems for such a push to sell.

    • Ect Ect on Aug 17, 2014

      The Treasury never intended to be a long-term shareholder, and has been working since 2011 to sell its stake. So far, it's reduced its ownership from 74% to 17%, and is now planning to sell the rest in the open market. How is that a "push to sell"?