July 9 (Bloomberg) -- Ally Financial Inc., the auto lender majority-owned by U.S. taxpayers, dropped JPMorgan Chase & Co. from the list of underwriters for its planned initial public offering, saying rival banks were more committed.
Citigroup Inc., Morgan Stanley, Goldman Sachs Group Inc., Barclays Plc and Deutsche Bank AG were listed as underwriters in an amended filing today by Detroit-based Ally. A filing in October included JPMorgan in addition to those five banks.
“The lineup of global coordinators is a reflection of the investment the various banks have made in the Ally relationship over the last year,” Gina Proia, a spokeswoman for the auto lender, said in an e-mail today. Tasha Pelio of New York-based JPMorgan declined to comment.
The U.S. Treasury Department has paid lower underwriting fees than other sellers as it exits investments in firms bailed out during the financial crisis. Underwriting fees were less than 1 percent for the sale of stock in firms such as General Motors Co. and American International Group Inc., compared with an average of more than 3 percent for additional equity offerings in the U.S. this year and about 5.5 percent for IPOs, according to data compiled by Bloomberg.
The U.S. is seeking to exit its 74 percent stake in Ally after previously getting rid of holdings in Citigroup and AIG. Ally has sold units and worked to limit liabilities from its bankrupt mortgage business as Chief Executive Officer Michael Carpenter seeks to repay a $17.2 billion bailout.