US Treasury Begins Second Divestiture Plan Of Ally Stock

Cameron Aubernon
by Cameron Aubernon

Ally Financial, the lending artist formerly known as GMAC Financial, inches closer to freedom from government ownership as the United States Treasury begins a second trading plan to shed its shares.

Automotive News reports the plan would allow the U.S. Treasury “to continue exiting the investment in a manner that balances speed of exit with maximizing the taxpayer’s return,” according to CFO Charmian Uy.

The first plan saw the Treasury sell 8.9 million shares for $218.7 million in ROI for taxpayers, adding to the $18 billion recovered since the department first took majority ownership at the beginning of the Great Recession six years ago.

At the time, $17.2 billion was given to the floundering lender via the Troubled Asset Relief Program to prevent falling into the same abyss that took Lehman Brothers, Washington Mutual and a number of small banks, giving the Treasury 74 percent of the shares then available. Currently, it holds just 13.8 percent — or 66.2 million shares — of Ally common stock, all of which may be sold by the end of 2014.

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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  • Big Al from Oz Big Al from Oz on Sep 15, 2014

    How much has the Dow Jones risen since 2008? It has tripled. "Printing" money has caused this. Lots of money sloshing around trying to find an asset. How much is Ally really worth, say in a few years? But, how good are these assets? Are they worth the paper they are printed on? Who will eventually be left holding the debt when the "asset" prices slide? The future is interesting indeed.

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    • Rpol35 Rpol35 on Sep 15, 2014

      "How much has the Dow Jones risen since 2008? It has tripled." Not exactly, it was at 7,063 at its nadir at the end of 2008/early 2009 so it has a bit more than doubled but not tripled; that would be crazy over the top with a 21,000 DOW. The DOW has been driven by large corporations, essentially not hiring (there is a lot of corporate distrust of all things Fed right now), controlling the expense side and thusly driving up their EPS and stock price. Those with something to invest are watching the numbers, buying in, probably too late, and fueling the fire as well. Sure there is some "irrational exuberance" going on and that will come to bear at some point, it always does but that's the cyclical nature of the stock market. Printing money, however=inflation and that just isn't happening. Agreed, there is no telling what kind of a snake basket Ally's assets are so the faster the treasury unloads, the better for the taxpayer I would imagine. As for shareholder acquisition of the IPO, it's buyer beware.

  • Agent534 Agent534 on Sep 15, 2014

    You fail to remind us that Ally's major owner besides the US government is Cerberus, you know, the group that bought Chrysler Corp, and was allowed to keep Chrysler Financial through the bankruptcy of Chrysler. Cerberus was able to sell Chrysler Financial for $7 billion, same as it bought Chrysler for, and get off the hook for the money owed the US taxpayers for the Chrysler bailout. The US government again is protecting Cerberus's investments by babysitting Ally on the taxpayer dime.

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    • Corey Lewis Corey Lewis on Sep 15, 2014

      @highdesertcat Oh I easily believe they're crooked as can be.

  • Corey Lewis Corey Lewis on Sep 15, 2014

    My sister's name is Ally, and seeing her name in purple always makes me annoyed that it's a bank name.