March 31 (Bloomberg) -- Ally Financial Inc. filed for an initial public offering of the U.S. government’s majority stake as part of the auto and home lender’s plan to regain its independence.
The size, price and timing for the sale haven’t been set, Detroit-based Ally said today in a statement. Ally chose Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. to underwrite the sale, according to the statement.
The U.S. Treasury Department holds a 74 percent stake in Ally’s common shares after funding at least three rounds of aid totaling $17.2 billion during the financial crisis. Ally, formerly known as GMAC Inc., was deemed crucial to the survival of the auto industry by U.S. regulators.
Chief Executive Officer Michael Carpenter, 64, returned the lender to profitability last year with $1.08 billion in net income. The company had almost collapsed as losses piled up from subprime home lending.
Ally made more new-car loans than any other lender last year, according to Experian Automotive, a Costa Mesa, California-based firm that tracks auto-lending data. The company remains one of the biggest lenders to dealers of General Motors Co., its former parent, which still has a stake in Ally. Other stakeholders include investors affiliated with Cerberus Capital Management LP.
To contact the reporter on this story: Dakin Campbell in San Francisco at email@example.com
To contact the editor responsible for this story: Rick Green in New York at firstname.lastname@example.org.