Ally Financial delays IPO
Ally Financial (GJM) is still preparing for an initial public offering, which may not come in late June as anticipated, one Treasury Department official confirmed. Timothy Massad, acting assistant secretary for the Treasury, told Bloomberg Television Friday that the former financing unit of General Motors (GM) is delaying its IPO until market fundamentals improve. "They are still getting ready for their IPO," Massad said. An Ally Financial spokesman declined to comment on the IPO postponement. The auto and mortgage lender filed with offering documents with the Securities and Exchange Commission at the end of March, saying it hoped to raise about $6 billion. Reuters reported the company planned to come to market before the July 4 holiday. In 2008 and 2009, the Treasury invested about $17.2 billion in Ally Financial through the Troubled Assets Relief Program and various other programs. The government owns nearly 74% of the company, according to an SEC filing. Ally Financial was at the epicenter of the robo-signing scandal that broke last fall, as employees allegedly signed foreclosure affidavits without prior knowledge of the case or a notary present. The company said it "deeply regrets" an error found in servicing processes at the firm. Massad was asked on Bloomberg whether any mortgage issues contributed to the decision to delay Ally's IPO. Massad neither confirmed nor denied the issue's relevance. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.