Blogatative Easing: Ben Bernanke, Brookings blogger

Blogatative Easing: Ben Bernanke, Brookings blogger

Return to the scene of the crime?

Mortgage brokers: Update your stump speech on mortgage lending, Mr. President

NAMB says mortgage brokers have been at forefront of reform

Move lawsuit against Zillow clears contempt hurdle with settlement

Move declares "full steam ahead" in prosecution
W S
The Ticker

Ally Financial underwriters purchase stock back from Treasury

Treasury to recover additional $181M

Treasury Department
/ Print / Reprints /
| Share More
/ Text Size+

The underwriters on Ally Financial’s initial public offering (IPO) have elected to partially exercise the over-allotment option to purchase an additional 7,245,670 shares of Ally common stock at the IPO price of $25.00.

After the sale of these additional shares, the U.S. Department of the Treasury is expected to recover an additional $181 million, which brings the total recovery on the Ally investment to approximately $17.8 billion. 

This is approximately $700 million more than was originally invested in the company during the housing crisis. Ally's mortgage unit, ResCap, entered Chapter 11 bankruptcy protection in May 2013. The company since sold off all remaining mortgage operations.

Following the completion of this transaction, Treasury will hold approximately 16% of Ally’s common stock.

In March, after more than a year of preparation, the U.S. Department of the Treasury commenced an underwritten initial public offering of Ally Financial common stock. 

Recent Articles by Trey Garrison

Comments powered by Disqus