• Apr 1st 2011 at 9:21AM
  • 8
Ally Financial, formerly GMAC Financial, has filed the paperwork necessary for an Initial Public Offering. The Detroit News reports that the filing will go to the Securities and Exchange Commission for approval before Ally can go public; a process that could take months. The federal government, which owns 74 percent of the lending arm due to its $17.2 billion 2009 bailout, is the only party listed as a stockholder.
The next step for Ally Financial is to go on a tour to entice investors to buy into the financial firm in advance of the SEC's decision. Ally isn't yet close to announcing a price for the stock, nor has the government disclosed the amount of shares it plans to unload, but the DetNews reports that the fed plans to net $5.5 billion from the transaction. The government also owns $5.9 billion in convertible preferred stock.

General Motors still owns 9.9 percent of Ally Financial, but the automaker reportedly won't participate in the sale. The General did announce previously that it sold its preferred stock, though, for $1 billion.

[Source: The Detroit News]

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    • 1 Second Ago
      • 4 Years Ago
      This new company is a joke, I have my truck financed through GMAC and then these goons took over, and I have been making payments with a 'Cash Card' since I try to avoid actually having a bank account (over dreft blah blah blah..).

      Anyways, I go to login and make a payment, and boom, they only accept checks now? Oh and whats this...this company just so happens to offer Checking Accounts... Sounds like a good racket to me. So I called and the operator sent me through this automated payment system since I wanted to pay with my card, and I now have to pay 15$ everytime I make a payment with the card.

      It's Extortion.
        • 4 Years Ago
        7egend, I feel for you, but really you're just making things hard on yourself.

        I suspect they stopped taking credit cards because of the miles/points stuff. Credit card companies are driving up clearing costs and then sending a significant portion of the costs back to the consumer in the form of "bonus" miles/points. You may say this sounds great as a consumer, but there's no such thing as "bonus", that money is coming right out of the merchant's (the person getting paid's) pocket. This just drives up prices and penalizes anyone who pays with anything but a credit card to boot.

        Ally likely doesn't want to lose 3% of the payment in credit card clearing fees, so they charge a $15 fee to cover it.

        Now, all this having been said, they shouldn't be able to change the terms of the loan with you after it is initiated. Call customer service (at a point when you don't have a payment due yet) and tell them this. It would seem to me they have to allow you to pay with a cash card at no additional charge if they did so before.
        • 4 Years Ago
        Man, than stinks. A friend of mine uses a credit card to pay his bills (so he can rack up points), and this would be a real bummer. That name stinks, too. When I see it I think of that weight loss supplement, Alli.
        • 4 Years Ago
        if you don't spend more than you make, you won't get overdrafts by having a checking account. banks aren't as evil as people paint... people are just too stupid with their spending habits...
        • 4 Years Ago

        It's not a matter of my spending habits, it's a matter of the banks making my money available when it's needed to be available. For example, when I did have a bank account it would take 3 - 5 days for those funds to be available when a deposit was made. Other weeks it would be quicker. The weeks it took 3 - 5 days would cause we to suffer 2 - 3 over draft charges, which is the way banks plan it, that's how they make money.

        Can a person prove this, not really, since they place disclaimers everywhere stating they don't really know how long your money will be accessible. Therefore I switched to strictly Cash only. I make enough money to afford my bills, but I can't afford for a bank to hold my funds so they can profit off small print disclaimers.
      • 4 Years Ago
      Does anyone else find it slightly depressing that the government, which has done such a great (sarcasm) job running Fannie Mae and Freddie Mac is getting even deeper into the money lending business?

      And what will the gov do if the IPO is successful? Pay back the tax payers that financed the GM bail out? And what if it fails? Ask for more money and keep on lending, like Fannie and Freddie?
        • 4 Years Ago
        I would imagine the money would go to pay for those who financed the GMAC/Ally bailout. I say this since the GM IPO money went to the GM bailout.
      • 4 Years Ago
      Sonia M. Pena is talking about Alley working with Nuvell Finance.....At the last complain .....